Palantir stock has been a standout performer in the AI space over the last few years and it’s easy to see why. Thanks to the success of its Artificial Intelligence Platform (AIP) – which has been adopted by both government organizations and commercial businesses – its growth has been prolific.
Recently, Palantir posted its earnings for the fourth quarter of 20251 and the numbers were again outstanding. Here’s a look at the highlights of the Q4 report, and Wall Street’s reaction to the print.
70% Revenue Growth in Q4
For the fourth quarter of 2025, Palantir generated revenue of $1.41 billion. This figure was up 70% year on year and ahead of analysts’ forecast of $1.33 billion2.
Driving this growth was strength on the US commercial side of the business. Here, revenue was up 137% year on year to $507 billion, signaling that companies across the US have been rapidly adopting the group’s AI solutions.
US government revenue came in at $570 million. This figure was up 66% year on year, fueled by contract wins with the Department of Defense.
In terms of profitability, performance was very strong. For the quarter, net income attributable to common stockholders was $609 million, up 670% year on year.
As for the company’s “Rule of 40” score (revenue growth plus operating margin), this came in at 127%. That was up from 114% in the previous quarter.
Earnings Call Insights
On the earnings call3, Chief Revenue Officer Ryan Taylor talked about how the company is transforming businesses from AI adopters to AI-native enterprises. “AIP continues to fundamentally transform how quickly our customers realize value, collapsing the time from initial engagement to transformational impact,” he said.
He also talked about how existing customers are expanding “faster and larger.” For example, a utility company expanded from $7 million annual contract value (ACV) in Q1 2025 to $31 million ACV by year-end, while an energy company expanded from $4 million ACV in Q1 2025 to over $20 million ACV by year-end, driven by value generated from new use cases.
Zooming in on the government side of the business, Taylor noted that the US Navy awarded Palantir a contract worth up to $448 million in Q4 to modernize the shipbuilding supply chain and accelerate delivery of naval vessels. “In an era of intensifying global threats and budgetary pressure, the government is turning to software that actually works, as speed, precision, and decision advantage are paramount,” he said.
Strong Guidance For 2026
Turning to guidance, this was far better than expected. Looking ahead, management said for 2026, it’s expecting revenue of $7.182 billion to $7.198 billion.
That would represent year-on-year growth of approximately 60%. Going into the print, analysts had been looking for top-line growth of around 40% for 2026.
On the US commercial side of the business, the company is expecting growth of at least 115% year on year. So, it clearly expects corporate adoption of its platform to remain strong.
Price Target Increases
Shortly after the Q4 earnings, a number of Wall Street firms increased their price targets4 for Palantir stock including:
Deutsche Bank: $160 to $200
HSBC: $197 to $205
Piper Sandler: $225 to $230
Citi: $235 to $260
However, it should be noted that several firms, including DA Davidson and UBS, slightly lowered their price targets for the stock (both went to $180). These reductions were primarily due to valuation concerns.
The highest price target for PLTR is currently $260 from Citi while the average price target is $191.
Footnotes:
1Palantir Reports Q4 2025, as of February 2, 2026
2CNBC, Palantir stock rallies after company beats earnings estimates, as of February 3, 2026
3Investing.com, Earnings call transcript: Palantir’s Q4 2025 revenue surges, stock rises, as of February 2, 2026
4Investing.com, Palantir Technologies Inc (PLTR), as of February 3, 2026
