Palantir Smashes Expectations: $0.25 EPS and $1.41B Q4 Revenue Leave Wall Street in the Dust

Another quarter, another beat. The data-mining giant just delivered a masterclass in exceeding forecasts, leaving analysts scrambling to update their models.

The Numbers Don't Lie

Forget the whisper numbers. Palantir's latest financials—$0.25 per share on $1.41 billion in revenue—aren't just good; they're a clean sweep against every single Wall Street projection. It's the kind of performance that turns cautious optimism into outright bullishness, proving the company's commercial and government engines are firing in unison.

Execution Over Hype

This isn't about futuristic promises or buzzword-laden presentations. It's about contract wins, platform adoption, and sheer execution. While other tech firms talk about AI and data integration, Palantir is quietly building it, deploying it, and—most importantly—getting paid for it. Their software isn't just a tool; it's becoming the operational backbone for an increasing number of Fortune 500 and federal agencies.

The Street's Reaction: A Mix of Awe and Annoyance

You can almost hear the collective sigh from the analyst community—a blend of admiration for the results and frustration at having to explain yet another miss in their own forecasts. It's a beautiful reminder that sometimes, the best investment thesis is simply betting on the company that actually does the work, not the one that talks the most about it on earnings calls. After all, what's Wall Street's favorite pastime if not revising their price targets upward after the fact?

Palantir's report does more than just check a box. It signals a firm moving beyond its controversial origins into a phase of undeniable, quantifiable growth. The data is in, and it's overwhelmingly positive.

Palantir raises guidance after blowout results

Looking ahead, Palantir expects between $1.532 billion and $1.536 billion in Q1 revenue. Analysts thought they’d only bring in $1.32 billion, so that new range is way above what the Street had priced in.

For fiscal 2026, the company said it sees revenue landing between $7.182 billion and $7.198 billion, easily topping the $6.22 billion Wall Street target.

CEO Alex Karp said, “These are indisputably the best results that I’m aware of in tech in the last decade.” He added, “If you’re not spending it on this, you’re not spending on something that is part of keeping up with momentum.”

Alex said demand is so strong inside the U.S. that they’ve stopped selling some new products to allies. “America has become more lethal, more confident, more divergent from our adversaries, and, quite frankly, from our allies,” he said. He also said the company has become “so engaged in the U.S.” that it’s had to put off certain international expansions.

Much of that surge in demand came from the Department of Defense. Back in summer 2025, Palantir signed a deal worth up to $10 billion with the U.S. Army to provide software and data infrastructure. Alex mentioned that U.S. government adoption alone jumped 66% year over year.

Backlash, stock pressure, and Nvidia partnership shake things up

Not everything has been smooth. Palantir faced backlash over its work with the Department of Homeland Security, especially with U.S. Immigration and Customs Enforcement, after two protesters were shot by federal agents in Minneapolis.

Alex pushed back hard. “If you are critical of ICE, you should be out there protesting for more Palantir,” he said. “Our product, actually, in its core, requires people to conform with Fourth Amendment data protections.”

On the commercial side, U.S. commercial revenue more than doubled, and total commercial deal value grew 145% year over year to $4.38 billion. Palantir also locked in a partnership with Nvidia, one of the top names in AI chips.

Retail investors were already hyped. The stock had gained 81% over the last year, but it’s now down 15% in 2026, following a rough month for AI stocks. Worries about valuations and an overheated AI market led to a pullback. In November, Michael Burry bet against Palantir and Nvidia. Alex’s response? “That MOVE was bats— crazy” and “market manipulation.”

Palantir’s earnings call is scheduled for 5 p.m. ET today. In a letter to shareholders, Alex wrote that Palantir’s profits are “pure and uncontrived,” pushing back at critics who say AI companies aren’t focused on fundamentals. He also said their commercial software is now critical for organizing large language models.

“Anything lacking a zealous focus on the value being created by these technical systems, the mice that the cat actually catches, will ultimately fade to grey and be forgotten,” he wrote.

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