Palantir Technologies Inc. builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally.
Palantir delivered what may be the most impressive quarter in its history as a public company, with fourth quarter revenue surging 70% year over year to $1.41 billion, comfortably beating the $1.33 billion Wall Street expected. Adjusted earnings per share came in at $0.25, also ahead of the $0.23 consensus. For the full year, revenue reached $4.48 billion, representing 56% annual growth.
The standout story this quarter is the explosive growth of Palantir’s U.S. commercial business, which serves private sector companies. That segment generated $507 million in revenue, up a remarkable 137% from the same period last year and 28% from just last quarter. This growth reflects how rapidly American businesses are adopting Palantir’s AI platform to run their operations. Companies across healthcare, energy, and manufacturing are signing large, multiyear deals, with 61 contracts exceeding $10 million closed during the quarter alone. Total contract value hit a record $4.26 billion, up 138% year over year, signaling that the revenue pipeline remains robust heading into 2026.
The U.S. government segment also performed well, contributing $570 million in revenue (up 66% year over year), bolstered by major defense contracts including a deal with the U.S. Army valued at up to $10 billion and a $448 million Navy contract for shipbuilding modernization. Together, U.S. operations now represent 77% of total revenue. International growth, however, remained modest at roughly 8%, as management acknowledged headwinds from procurement challenges and political complexity abroad.
Profitability was equally striking. Adjusted operating income reached $798 million, producing a 57% margin. GAAP net income hit $609 million for the quarter compared to just $79 million a year ago, demonstrating that Palantir’s growth is translating into real bottom line results. The company’s Rule of 40 score, a health metric combining revenue growth and profit margin, reached 127%, an elite level rarely seen in enterprise software.
Looking ahead, Palantir issued guidance that far exceeded expectations. Management projected fiscal 2026 revenue of approximately $7.19 billion, representing 61% growth and roughly $1 billion above consensus forecasts. First quarter 2026 revenue is expected near $1.53 billion, again well above the $1.32 billion analysts modeled. Adjusted free cash flow for 2026 is guided between $3.9 billion and $4.1 billion.
Following the report, Northland upgraded the stock to Outperform with a $190 price target and raised its free cash flow forecast to $4.12 billion. While valuation remains a debate, the financial momentum is undeniable.
| Segment | Q4 2024 | Q4 2025 | YoY Growth |
| U.S. Commercial | $214M | $507M | +137% |
| U.S. Government | $343M | $570M | +66% |
| International | $307M | $331M | +8% |
| Total Revenue | $828M | $1,408M | +70% |
Source: Palantir Q4 2025 Earnings Press Release (February 2, 2026)
