Palantir Technologies (PLTR) reported December-quarter earnings and revenue that topped Wall Street estimates amid strength in its U.S. government and commercial businesses. Palantir stock popped amid 2026 revenue and free cash flow guidance that came in well above expectations, driven by artificial intelligence products.
At Citi, analyst Tyler Radke said in a report: "Q4 was another extraordinary print with strong top/bottom line beats. With initial 2026 guidance well surpassing consensus expectations, Palantir's momentum increasingly stands out in a software market where accelerating growth stories are rare. The beat was once again highlighted by AI-driven transformation/demand from both commercial and government customers (particularly in the U.S)."
Reported after the market close on Monday, Palantir earnings for the fourth quarter were 25 cents per share on an adjusted basis, up 78% from a year earlier. Revenue climbed 70% to $1.407 billion, the maker of data analytics software said.
Wall Street Analysts Debate Valuation
"Palantir has delivered ten consecutive quarters of growth acceleration, which means that comparisons will only continue to get more demanding," said Jefferies analyst Brent Thill in a report. Thill maintains an under-perform rating for Palantir stock based on valuation.
In Q4, U.S. commercial revenue grew 137% year-over-year to $507 million, vs. estimates of $474 million. U.S. government revenue grew 66% to $570 million, vs. estimates of $528 million.
Morgan Stanley analyst Sanjit Singh holds an equal-weight rating on Palantir stock. "With 2026 guidance targeting growth of 61%-plus, Palantir is on course to reach $10 billion in revenue at the fastest growth rate and highest margins perhaps in software history, underscoring its status as a clear AI winner," he said in a report.
Singh added: "Palantir delivered its fastest revenue growth as a public company. Equally impressive is the margin performance. The midpoint of the 2026 outlook calls for operating margin of 56% which topped consensus looking for operating margin of 50%."
On the stock market today, Palantir stock jumped over 6% to near 157.53 in early trading.
Palantir Stock: 2026 Guidance Above Views
For full-year 2026, Palantir said it expects revenue in a range of $7.18 billion to almost $7.2 billion. Analysts had predicted sales of $6.295 billion
In 2026, Palantir forecast U.S. commercial revenue growth of 115% vs. estimates of 65% growth to $2.36 billion.
Also, Palantir forecast adjusted free cash flow of over $4 billion at the midpoint of guidance vs. estimates of $2.778 billion.
At William Blair, analyst Louis DiPalma said in a report: "Palantir shares are trading up after the company issued its 2026 revenue and a free cash flow outlook well above consensus. ... Our (research) tracker suggests that the U.S. Department of War is going all-in on Palantir for its mission-critical data analytics platforms."
AI Stocks: Software Struggles
At the end of 2025, Palantir had over $7.2 billion in cash on its balance sheet.
Heading into the fourth-quarter earnings report, PLTR stock had retreated 16% in 2026. Palantir surged 135% last year. PLTR stock hit an all-time intraday high of 207.52 on Nov. 3. Many AI stocks have pulled back from 52-week highs.
Palantir provides data analytics tools to government customers for intelligence gathering, surveillance, counterterrorism and military purposes. More recently, Palantir has aimed to use generative AI to spur growth in the U.S. commercial market, such as health care and financial services.
Palantir last year hosted its eighth artificial conference for customers. AIPCon is the company's flagship marketing event showcasing real-world AI use cases.
Heading into the Palantir earnings report, software stocks had retreated in 2026 amid investor worries that artificial intelligence companies like OpenAI and Anthropic will emerge as competitors. There's growing investor angst over generative AI software coding tools and automated AI assistants, and how they might impact traditional software product growth.
"While the market's relationship with AI companies continues to be volatile, we see these results cementing Palantir's place as one which will survive and thrive in the chaos," said Bank of America analyst Mariana Mora in a report.
Palantir Stock's Technical Ratings
Wall Street analysts with a bearish view on PLTR stock contend that despite torrid revenue growth its premium valuation is well above historical comparisons for software companies.
Palantir stock holds a Composite Rating of 80 out of a best-possible 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
PLTR stock holds an Accumulation/Distribution Rating of E. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.