Key Stats for Palantir Stock
- Pre-market Price change for Palantir stock: 10%
- $PLTR Share Price as of Feb. 2: $148
- 52-Week High: 208
- $PLTR Stock Price Target: $189
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What Happened?
Palantir (PLTR) stock surged over 10% in pre-market following a blowout fourth-quarter earnings report that crushed Wall Street expectations.
The AI software company posted revenue of $1.41 billion, beating estimates of $1.33 billion, while adjusted earnings per share came in at $0.25 versus the $0.23 analysts expected.
Revenue grew 70% compared to the same period last year, marking the company’s highest growth rate since going public. CEO Alex Karp didn’t hold back, calling the results “indisputably the best results that I’m aware of in tech in the last decade” during an interview with CNBC.
The momentum isn’t slowing down either. Palantir stock investors got even better news with the company’s 2026 guidance.
Management expects first-quarter revenue between $1.532 billion and $1.536 billion, well above Wall Street’s $1.32 billion estimate.
For the full year, Palantir guided to revenue of $7.182 billion to $7.198 billion, crushing the consensus forecast of $6.22 billion.
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What the Market Is Telling Us About PLTR Stock
The market’s reaction signals strong confidence in Palantir’s AI strategy, but the stock’s 15% year-to-date decline indicates investors remain cautious about valuation.
Trading at premium multiples, Palantir stock has faced skepticism from some analysts despite delivering exceptional growth.
What’s driving the business? Two things: government contracts and commercial AI adoption.
- On the government side, Palantir’s U.S. government revenue reached $570 million, up 66% year over year.
- The company recently secured major contracts, including an up to $10 billion deal with the U.S. Army and a $448 million agreement with the U.S. Navy to modernize shipbuilding.
- Karp noted that demand from the Department of Defense is so strong that Palantir has delayed selling new products to international allies to focus on U.S. needs.
The commercial business is exploding even faster.
U.S. commercial revenue more than doubled to $507 million, growing 137% year-over-year.
Businesses are racing to implement Palantir’s AI tools, with remaining commercial deal value jumping 145% to $4.38 billion.
The company also announced a strategic partnership with Nvidia, further strengthening its position in the AI infrastructure space.
However, Palantir stock hasn’t been without controversy.
The company faced backlash over its work with U.S. Immigration and Customs Enforcement following a fatal shooting incident in Minneapolis. Karp defended the partnership, arguing that Palantir’s software actually enforces Fourth Amendment data protections.
Notable investor Michael Burry revealed a short position against Palantir stock in November, which Karp called “bats— crazy” and accused of “market manipulation.”
PLTR stock then suffered its worst month in two years as the broader AI sector faced a selloff driven by valuation concerns.
Despite the volatility, Palantir’s fundamentals tell a compelling story. The company posted net income of $608 million, or $0.24 per share, compared to just $79 million a year ago. Its Rule of 40 score hit 127%, combining revenue growth and profitability in a way few tech companies achieve.
In his letter to shareholders, Karp emphasized that Palantir’s profits are “pure and uncontrived,” pushing back against critics who question the fundamentals of the AI company.
He warned that companies without a “zealous focus on the value being created” by AI will “ultimately fade to grey and be forgotten.”
With government contracts accelerating and commercial customers expanding rapidly, Palantir stock remains one of the market’s most polarizing AI plays. Investors now face a choice: bet on continued hyper-growth execution or worry that the stock’s premium valuation leaves little room for error.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
