Palantir Technologies Inc-A (NASDAQ:PLTR) has closed the book on a remarkable fiscal 2025 with a fourth-quarter earnings report that not only surpassed analyst expectations but also set a high bar for the year ahead. The data analytics and artificial intelligence software firm delivered results that underscore its accelerating growth trajectory, particularly within its U.S. commercial segment, leading to a significant positive reaction in after-hours trading.
Earnings and Revenue: A Clear Beat
The company’s performance for the quarter ended December 31, 2025, handily exceeded consensus estimates on both the top and bottom lines. This marks the tenth consecutive quarter of accelerating revenue growth for Palantir.
- Revenue: Reported Q4 revenue reached $1.41 billion, a substantial 70% increase year-over-year. This figure came in well above the analyst consensus estimate of approximately $1.34 billion.
- Earnings Per Share (Non-GAAP): The company posted adjusted EPS of $0.25, beating the average analyst estimate of $0.23.
The strength was not limited to the quarter. For the full fiscal year 2025, Palantir reported revenue of $4.48 billion, representing 56% growth compared to 2024.
Market Reaction and Forward Guidance
The market’s immediate response to the earnings beat and, more critically, to the company’s future outlook, was decisively positive. In after-hours trading following the release, Palantir’s stock rose approximately 5.4%. This move suggests investors are rewarding the company not just for its past performance but for its confident projection of continued hyper-growth.
The most impactful driver of this reaction appears to be Palantir’s guidance for fiscal year 2026, which dramatically outpaces existing Wall Street forecasts.
- FY 2026 Revenue Guidance: Palantir expects revenue between $7.18 billion and $7.20 billion. At the midpoint, this represents year-over-year growth of 61% and crushes the analyst consensus estimate of $6.34 billion for the year.
- U.S. Commercial Revenue Guidance: The company provided specific guidance for its fastest-growing segment, forecasting U.S. commercial revenue in excess of $3.14 billion. This implies growth of at least 115% from the prior year.
- Q1 2026 Outlook: For the coming quarter, Palantir anticipates revenue between $1.532 billion and $1.536 billion, which is approximately 15% higher than the pre-report analyst estimate of $1.33 billion.
Key Highlights from the Quarter
Beyond the headline numbers, the earnings press release detailed several metrics indicating robust business health and operational leverage:
- U.S. Commercial Momentum: U.S. commercial revenue grew 137% year-over-year to $507 million in Q4. For the full year, it reached $1.47 billion, up 109%.
- Profitability and Cash Flow: The company demonstrated strong profitability, with a GAAP net income margin of 43% for the quarter. It generated $777 million in cash from operations, representing a 55% margin.
- Deal Activity: Palantir closed a record $4.26 billion in total contract value (TCV) during the quarter, up 138% year-over-year. It also closed 180 deals valued at $1 million or more.
- Balance Sheet Strength: The company ended the year with a formidable war chest of $7.2 billion in cash, cash equivalents, and short-term U.S. Treasury securities.
Conclusion
Palantir’s fourth-quarter report serves as a powerful validation of its strategy and its unique positioning in the enterprise AI and data analytics market. The results highlight a company that is successfully scaling its "commodity cognition" thesis, as CEO Alex Karp termed it, translating advanced AI models into significant commercial and government contracts. The substantial guidance raise for 2026, far above what analysts had modeled, indicates management sees this growth acceleration continuing unabated. The positive after-hours price action reflects a market recalibrating its expectations for Palantir’s near-term future based on this exceptionally strong forecast.
For a detailed look at Palantir’s historical earnings and future estimates, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
