Palantir beats fourth-quarter estimates on the strength of AI and defense demand

February 2, 2026

TL;DR

Palantir's Q4 adjusted earnings per share were 25 cents, surpassing the expected 23 cents.
Q4 revenue reached $1.41 billion, exceeding the expected $1.33 billion and marking a 70% increase year-over-year.
U.S. government and commercial revenue segments showed significant growth, reaching $570 million and $507 million respectively.
The company forecasts first-quarter revenue between $1.532 billion and $1.536 billion, higher than projections.
Fiscal 2026 revenue guidance is set between $7.182 billion and $7.198 billion, beating expectations.
Demand for Palantir's AI tools has surged from both commercial clients and government agencies like the Department of Defense, IRS, and Department of Homeland Security.
CEO Alex Karp stated that Palantir has temporarily halted sales of new products to allies due to overwhelming demand in the U.S.
The company has faced backlash regarding its work with U.S. Immigration and Customs Enforcement (ICE).
Palantir's U.S. commercial revenues more than doubled year-over-year.
Net income for the quarter was $608 million, or 24 cents per share, compared to $79 million, or 3 cents per share, a year ago.
Despite strong performance, the stock has seen some volatility, with shares down about 15% in 2026, and faced a bet against it by short seller Michael Burry.

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