Shares of Palantir Technologies (NASDAQ:PLTR) jumped more than 11% in U.S. premarket trading on Tuesday after the data analytics group delivered better-than-expected fourth-quarter results and unveiled a bullish revenue forecast for 2026.
The company, which supplies data integration and analytics software to government bodies and commercial clients, reported adjusted earnings of $0.25 per share for the final quarter of last year, ahead of the $0.23 analysts had pencilled in. Quarterly revenue surged 70% year on year to an all-time high of $1.41 billion, comfortably beating the $1.32 billion consensus, as strong demand for AI-enabled products drove growth across both its public-sector and enterprise operations.
Looking ahead, Palantir guided for first-quarter revenue of between $1.532 billion and $1.536 billion, well above market expectations of roughly $1.33 billion. For the full year, the company expects revenue in a range of $7.182 billion to $7.198 billion, significantly higher than the $6.28 billion consensus forecast.
Chief executive Alex Karp said in a statement that the group is beginning to see meaningful operating leverage as advances in artificial intelligence scale across its platform.
While Palantir shares are still down more than 16% year to date, reflecting a broader pullback in software stocks, the longer-term picture remains strong. Over the past 12 months, the stock has gained more than 75%. The company has increasingly positioned its platform as a way for customers to deploy AI in areas such as logistics and defence, although its role in supporting U.S. government immigration enforcement has drawn criticism from some former employees and lawmakers.
In the U.S. market alone, revenue rose 93% year on year to $1.08 billion, supported by solid momentum in both commercial and government segments. U.S. commercial revenue jumped 137% to $507 million, while revenue from U.S. government clients increased 66% to $570 million.
During the quarter, Palantir said it closed 180 contracts worth at least $1 million, including 61 deals valued at $10 million or more.
“While software investors remain tough to satisfy these days, we remain confident that accelerating revenue growth and expanding margins into 2026 will attract greater interest as market sentiment stabilizes,” analysts at Loop Capital, including Mark Schappel, wrote in a note.