Palantir Soars on AI-Driven Earnings Beat, Defying Skeptics with "Remarkable" Growth
Palantir Technologies (PLTR), the data analytics and artificial intelligence firm long viewed with a mix of fascination and skepticism on Wall Street, delivered a quarter that even its critics are finding hard to ignore. The company's shares jumped nearly 9% in extended trading Monday after it reported fourth-quarter results and forward guidance that solidly exceeded market expectations.
CEO Alex Karp, in a characteristically pointed shareholder letter, framed the performance as a decisive answer to years of doubt. "We have just demonstrated a massive acceleration in growth, a remarkable achievement that speaks to the wisdom of our foundational approach," Karp stated, alluding to the company's past battles over its profitability and business model. Revenue for the quarter hit $1.41 billion, topping the Visible Alpha consensus estimate of $1.34 billion and marking a twelfth consecutive quarter of beating projections. Adjusted earnings per share came in at $0.25, above the $0.23 forecast.
The strong report appears to be shifting the narrative. While Palantir's premium valuation has been a persistent concern—especially after a steep run-up in 2024—several analysts have recently warmed to the stock, citing its clear positioning in the burgeoning AI ecosystem. "Palantir is not just participating in the AI boom; it's becoming a critical enabler in the supply chain," noted William Blair analyst Louie DiPalma, who upgraded the stock to "Outperform" ahead of the earnings. He pointed to the stock's roughly 30% pullback from late-2023 highs as a compelling entry point, setting a 12-month price target above $200.
The bullish case rests on two powerful tailwinds: the accelerating adoption of AI solutions across commercial enterprises and heightened geopolitical tensions fueling demand for advanced defense and intelligence platforms. Citi's Tyler Radke, who upgraded Palantir to "Buy" last month, argued these trends are "acutely aligned to PLTR's strengths." He raised his price target to $235, suggesting revenue growth could reach 70-80% this year.
Beyond the numbers, the quarter was likely bolstered by deepening ties with the U.S. government. Analysts suggest the current administration's "all-in" stance on Palantir's platforms provided a significant boost, particularly in the final quarter of the year.
Market Voices: A Range of Reactions
David Chen, Portfolio Manager at Horizon Capital: "This is the validation bulls have been waiting for. Palantir is transitioning from a story stock to a demonstrated growth engine. The guidance for 2026 shows management's confidence isn't just rhetoric—it's backed by a tangible acceleration in their core markets."
Anya Sharma, Independent Tech Analyst: "Let's not get carried away. One good quarter, however strong, doesn't erase years of volatility and valuation concerns. The stock is still trading at a huge multiple, and this 'AI everything' narrative feels dangerously frothy. The moment growth shows any sign of moderation, the sell-off will be brutal."
Michael Roberts, Retail Investor & PLTR Shareholder: "Finally! Karp and the team have been telling us this was coming. The shorts and the doubters who called this a glorified government contractor are completely wrong. This proves Palantir's AI platform (AIP) is a commercial juggernaut. This is just the beginning."
Professor Evelyn Reed, Business School Dean: "Palantir's results highlight a broader trend: the companies successfully integrating AI into operational decision-making are starting to pull away from the pack. The key question is whether this growth rate is sustainable or if we're seeing a front-loaded surge from early adopters."