Palantir Earnings Shock After Blowout Report

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•  02 Feb 2026
 

•   PLTR  
   
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$PLTR just reminded Wall Street why it has been one of the most debated stocks in the AI era. Palantir delivered a powerful fourth-quarter earnings report, beating expectations on both revenue and profit, and the stock jumped about 7% in after-hours trading. For who endured a weak month and growing skepticism around software names, this was the kind of print that changes the tone overnight.

Revenue surged 70% year over year to $1.4 billion, well above the roughly $1.3 billion analysts had expected. Adjusted earnings per share climbed to $0.25, up sharply from $0.14 a year ago and ahead of the $0.23 consensus. In a market where high-multiple stocks are punished for even minor misses, a clear beat on both the top and bottom line matters.

The real story, however, is in the U.S. growth engine. U.S. commercial revenue exploded 137% to $507 million, significantly ahead of expectations. At the same time, revenue from the U.S. government rose 66% to $570 million, also beating forecasts. This combination is critical for investors. It shows that Palantir is not relying on just one segment. Government contracts remain strong, while commercial adoption of its AI-driven platforms is accelerating.

Forward guidance added fuel to the rally. Management expects around $1.5 billion in revenue for the first quarter, compared with Wall Street’s estimate near $1.3 billion. For the full year, Palantir is guiding to roughly $7.2 billion in revenue, far above the prior consensus of about $6.3 billion. In growth investing, “beat and raise” is the gold standard, and this was a clear example.

The stock had lost around 12% over the past month amid broader weakness in software names and rising fears that rapid advances in artificial intelligence could disrupt existing platforms. Instead, Palantir is positioning itself as a direct beneficiary of that disruption. CEO Alex Karp addressed the AI question head-on, acknowledging that no company is immune to change but emphasizing that Palantir has been investing in advanced AI technologies for years. His message was simple: the company is built for this moment.

The key question is valuation. Palantir has long divided opinion between retail bulls and cautious institutions. With this level of growth and a sharply raised outlook, the bullish case gains credibility. Analysts like William Blair’s Louis DiPalma have recently upgraded the stock, arguing that after the pullback, the valuation looks more reasonable relative to growth prospects and expanding ties with U.S. government agencies.

Still, expectations are now even higher. After a 70% revenue jump and aggressive guidance, the market will demand continued execution. Traders are watching whether the momentum in U.S. commercial adoption can sustain triple-digit growth rates and whether government demand remains durable in a shifting political and budgetary environment.

For now, the message from the earnings report is clear: $PLTR is not slowing down. With stronger fundamentals, confident management commentary, and a raised outlook, the stock has re-entered the spotlight. The next move will depend on whether buyers believe this is the start of another leg higher in the AI trade, or simply a powerful bounce in a still-volatile software sector.

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