Palantir Technologies Exceeds Q4 Expectations with Strong Growth Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy PLTR?
Source: Fool
- Strong Earnings Report: Palantir reported Q4 revenue of $1.41 billion, surpassing analyst expectations of $1.33 billion, highlighting the company's robust performance in the AI sector and solidifying its market position.
- Improved Profitability: Earnings per share reached $0.25, exceeding the expected $0.23, indicating effective management in cost control and revenue growth, which boosts investor confidence.
- Optimistic Growth Outlook: Palantir projects full-year revenue for 2026 to be between $7.182 billion and $7.198 billion, representing a remarkable growth rate of up to 60.8%, laying a strong foundation for future expansion and market share increase.
- Rapid Customer Growth: With only 571 commercial customers in the U.S., Palantir's commercial business grew by an astonishing 137% year-over-year in Q4, demonstrating the widespread applicability of its software across various industries and signaling ongoing growth opportunities.
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Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PLTR is 192.88 USD with a low forecast of 50.00 USD and a high forecast of 255.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 139.510
Low
50.00
Averages
192.88
High
255.00
Current: 139.510
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Palantir Reports Strong Q4 Results, Accelerating AI Business Growth
- Accelerated Revenue Growth: Palantir's Q4 2025 revenue reached $1.41 billion, marking a 70% year-over-year increase that surpassed management's guidance of $1.327 to $1.331 billion, highlighting the company's robust growth potential in the AI sector.
- Surge in U.S. Commercial Revenue: U.S. commercial revenue skyrocketed 137% to $507 million, with remaining deal value soaring 145% to $4.38 billion, indicating rapid customer adoption and expansion of its Artificial Intelligence Platform.
- Strong Customer Retention: The net revenue retention rate stood at an impressive 139%, demonstrating rapid expansion among existing customers, while the customer count grew by 34%, further solidifying Palantir's market position.
- Optimistic Future Outlook: The company projects Q1 revenue between $1.532 billion and $1.536 billion, representing a 74% growth rate, and anticipates full-year revenue of $7.182 billion to $7.198 billion, indicating a strong growth trajectory ahead.
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- Strong Earnings Report: Palantir reported Q4 revenue of $1.41 billion, surpassing analyst expectations of $1.33 billion, highlighting the company's robust performance in the AI sector and solidifying its market position.
- Improved Profitability: Earnings per share reached $0.25, exceeding the expected $0.23, indicating effective management in cost control and revenue growth, which boosts investor confidence.
- Optimistic Growth Outlook: Palantir projects full-year revenue for 2026 to be between $7.182 billion and $7.198 billion, representing a remarkable growth rate of up to 60.8%, laying a strong foundation for future expansion and market share increase.
- Rapid Customer Growth: With only 571 commercial customers in the U.S., Palantir's commercial business grew by an astonishing 137% year-over-year in Q4, demonstrating the widespread applicability of its software across various industries and signaling ongoing growth opportunities.
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- Optimistic Growth Guidance: The company projects full-year revenue for 2026 between $7.182 billion and $7.198 billion, indicating a remarkable growth rate of up to 60.8%, showcasing significant future growth potential, particularly in its commercial segment.
- Rapid Commercial Growth: Palantir's commercial business grew by an impressive 137% year-over-year in Q4, and with only 571 commercial customers in the U.S., the widespread applicability of its software suggests sustained growth ahead.
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- Accelerating Infrastructure Spending: Major tech companies like Microsoft, Google, and Amazon have collectively invested hundreds of billions in AI infrastructure over the past three years, with forecasts suggesting hyperscalers will exceed $500 billion in infrastructure budgets by 2026, although analysts express skepticism about the sustainability of this spending pace.
- Valuation Pressure: Palantir Technologies boasts a forward price-to-sales ratio nearly double that of its peers, and despite its impressive growth profile, the high valuation places immense pressure on the company to deliver exceptional quarterly earnings, making any misstep likely to trigger severe sell-offs.
- Threat to Traditional Models: The rise of large language models poses a challenge to traditional SaaS models, as these models can integrate with existing enterprise software platforms to enhance data processing efficiency, leading investors to worry about the future of software stocks.
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- Accelerated Revenue Growth: Palantir's Q4 2025 revenue reached $1.41 billion, marking a 70% year-over-year increase that surpassed management's guidance of $1.327 to $1.331 billion, highlighting the company's robust growth potential in the AI sector.
- Surge in U.S. Commercial Revenue: U.S. commercial revenue skyrocketed 137% to $507 million, with remaining deal value soaring 145% to $4.38 billion, indicating rapid customer adoption and expansion of its Artificial Intelligence Platform.
- Strong Customer Retention: The net revenue retention rate stood at an impressive 139%, demonstrating rapid expansion among existing customers, while the customer count grew by 34%, further solidifying Palantir's market position.
- Optimistic Future Outlook: The company projects Q1 revenue between $1.532 billion and $1.536 billion, representing a 74% growth rate, and anticipates full-year revenue of $7.182 billion to $7.198 billion, indicating a strong growth trajectory ahead.
See More
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- Market Sentiment Shift: Investors are transitioning from hype-driven valuations of AI stocks like Nvidia, Palantir, and Microsoft to a focus on actual execution and profitability, resulting in significant sell-offs that reflect market fatigue towards short-term speculation.
- Price Movement Analysis: As of February 6, 2026, Nvidia, Palantir, and Microsoft saw stock price increases of 0.80%, 2.66%, and 2.10% respectively, indicating that despite selling pressure, some investors remain optimistic about the long-term potential of these companies.
- Investor Strategy Adjustment: The video emphasizes that long-term investors should reassess their investment strategies in the AI sector, focusing on actual performance rather than short-term market sentiment to maintain competitiveness amid future market fluctuations.
- Future Outlook: As the market shifts its focus towards profitability in AI stocks, investors need to closely monitor these companies' financial reports and execution capabilities to make informed investment decisions in an evolving market landscape.
See More
Palantir Technologies Exceeds Q4 Expectations with Strong Growth Guidance
- Strong Earnings Report: Palantir reported Q4 revenue of $1.41 billion, surpassing analyst expectations of $1.33 billion, highlighting the company's robust performance in the AI sector and solidifying its market position.
- Improved Profitability: Earnings per share reached $0.25, exceeding the expected $0.23, indicating effective management in cost control and revenue growth, which boosts investor confidence.
- Optimistic Growth Outlook: Palantir projects full-year revenue for 2026 to be between $7.182 billion and $7.198 billion, representing a remarkable growth rate of up to 60.8%, laying a strong foundation for future expansion and market share increase.
- Rapid Customer Growth: With only 571 commercial customers in the U.S., Palantir's commercial business grew by an astonishing 137% year-over-year in Q4, demonstrating the widespread applicability of its software across various industries and signaling ongoing growth opportunities.
See More
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- Earnings Beat: Palantir's Q4 revenue reached $1.41 billion, surpassing analyst expectations of $1.33 billion, with earnings per share of $0.25 exceeding the forecast of $0.23, highlighting the company's robust performance in the AI sector.
- Optimistic Growth Guidance: The company projects full-year revenue for 2026 between $7.182 billion and $7.198 billion, indicating a remarkable growth rate of up to 60.8%, showcasing significant future growth potential, particularly in its commercial segment.
- Rapid Commercial Growth: Palantir's commercial business grew by an impressive 137% year-over-year in Q4, and with only 571 commercial customers in the U.S., the widespread applicability of its software suggests sustained growth ahead.
- Significant Valuation Risks: Despite strong market performance and a market cap exceeding $320 billion, Palantir's stock trades at about 45 times its 2026 revenue guidance, indicating potential vulnerability to sharp declines if growth slows.
See More
Software Selloff Resumes Amid Mixed Labor Market Signals
- Software Selloff: After three consecutive days of gains, the iShares Tech-Expanded Software Sector ETF (NYSE:IGV) fell over 3% on Wednesday, indicating a decline in market confidence towards the software sector, which could impact investor sentiment towards tech stocks overall.
- Strong Jobs Data but Severe Revisions: Although January's nonfarm payrolls rose by 130,000, significantly exceeding economists' expectations of 70,000, the total U.S. job growth for 2025 was drastically revised down to just 181,000, highlighting the fragility of economic recovery and potentially raising concerns about future growth.
- Unexpected Drop in Unemployment Rate: The unemployment rate fell from 4.4% to 4.3%, which appears positive on the surface; however, this contrasts sharply with the downward revisions in job growth, possibly leading investors to question the economic outlook.
- Robinhood's Poor Market Performance: Robinhood Markets Inc. (NASDAQ:HOOD) saw its stock tumble 12% following a revenue miss and disappointing cryptocurrency trading results, reflecting market concerns about its future profitability and potentially undermining investor confidence.
See More
Software Stocks Struggle at Start of 2026
- Industry Weakness: As of now, the iShares Expanded Tech-Software ETF has dropped 20% this year, indicating a weak performance in the software sector, significantly lagging behind the stable performance of the S&P 500 and Nasdaq Composite, reflecting a lack of confidence in software stocks.
- Accelerating Infrastructure Spending: Major tech companies like Microsoft, Google, and Amazon have collectively invested hundreds of billions in AI infrastructure over the past three years, with forecasts suggesting hyperscalers will exceed $500 billion in infrastructure budgets by 2026, although analysts express skepticism about the sustainability of this spending pace.
- Valuation Pressure: Palantir Technologies boasts a forward price-to-sales ratio nearly double that of its peers, and despite its impressive growth profile, the high valuation places immense pressure on the company to deliver exceptional quarterly earnings, making any misstep likely to trigger severe sell-offs.
- Threat to Traditional Models: The rise of large language models poses a challenge to traditional SaaS models, as these models can integrate with existing enterprise software platforms to enhance data processing efficiency, leading investors to worry about the future of software stocks.
See More
