Palantir delivers strong Q4, sees 2026 US commercial revenue surge ahead

Palantir reported better-than-expected fourth quarter results as US commercial revenue surged 137% from a year ago. 

The company reported fourth quarter net income of $609 million, or 24 cents a share, on revenue of $1.407 billion, up 70% from a year ago. Non-GAAP earnings were 25 cents a share. 

Wall Street was expecting Palantir to report fourth quarter non-GAAP earnings of 23 cents a share on revenue of $1.34 billion. 

Palantir's story continues to revolve around strong US government sales and enterprise revenue that is quickly reaching parity. Palantir's US commercial revenue was $507 million, up 137% from a year ago. US government revenue was $570 million, up 66% from a year ago. 

In his shareholder letter, CEO Alex Karp said: “Other pockets of what some not incorrectly describe as an exuberant market for artificial intelligence systems may feel pressure to manage their businesses around their financials. Our record profit, however, is pure and uncontrived. And it is, perhaps more important, the consequence of a business built around software platforms, not legions of well-credentialed consultants with their presentations and wise counsel.”

He continued:

“The large language models alone will not lead us to salvation. They require a means of reliably and efficiently interacting with the byzantine complexity of the modern enterprise—its tangle of datasets and operations and personnel.

The strings of text produced by the language models are little without a software architecture that can lend a grammar and structure to the output of these probabilistic prediction engines. The models must be tethered to objects in the real world, and it is that tether, that means of grounding and orientation, that we have built.”

 

According to Palantir, the company closed 180 deals of at least $1 million, 84 deals of at least $5 million and 61 deals of at least $10 million. US commercial remaining deal value, a spin on remaining performance obligations, was $4.38 billion, up 145% from a year ago. 

Palantir ended the quarter with a rule of 40 score of 127% and $7.2 billion in cash and equivalents. 

For 2025, Palantir delivered net income of $1.625 billion, or 63 cents a share, on revenue of $4.475 billion, up 75% from a year ago. 

As for the outlook, Palantir projected first quarter revenue of $1.532 billion to $1.536 billion with adjusted income from operations between $870 million and $874 million. For 2026, Palantir projected US commercial revenue to grow at least 115% to $3.144 billion. Total revenue will land between $7.182 billion to $7.198 billion.