Palantir's AI-Driven Surge: Tenth Straight Quarter of Accelerating Growth Defies Skeptics
In the fiercely debated arena of tech stocks, Palantir Technologies (NASDAQ: PLTR) consistently commands center stage. The data analytics and artificial intelligence firm's latest quarterly report has intensified the debate, delivering metrics that challenge bearish concerns over its valuation while fueling bullish optimism about its long-term trajectory.
The fourth-quarter figures were unequivocally strong. Palantir reported revenue of $1.40 billion, a 70% increase year-over-year, surpassing analyst estimates of $1.34 billion. Adjusted earnings per share reached $0.25, a 79% jump and ahead of the projected $0.23. This marks the company's tenth consecutive quarter of accelerating revenue growth—a rare feat in the technology sector.
The standout performer was the U.S. commercial segment, home to its flagship Artificial Intelligence Platform (AIP). Revenue there skyrocketed 137% to $507 million, now constituting 36% of total revenue. The company also secured a record $4.26 billion in total contract value (TCV) for the quarter, with U.S. commercial TCV hitting $1.34 billion. Perhaps most telling for future prospects, the remaining deal value (RDV) in the U.S. commercial segment ballooned to $4.38 billion, indicating a substantial pipeline of future business.
Financial health metrics soared. Palantir's "Rule of 40" score—a benchmark combining growth and profitability—climbed to an exceptional 127%. Operating cash flow reached $777 million with a 55% margin. "Our financial results have again exceeded even our most ambitious expectations," stated CEO Alex Karp. Bolstered by this momentum, management issued a 2026 revenue growth forecast of at least 61%, following 56% growth in 2025.
While the stock's premium valuation—trading at roughly 105 times next year's expected earnings—remains a point of contention, the latest report suggests the growth narrative is far from over. The results appear to validate the company's strategic pivot towards commercial AI adoption, building a more diversified revenue base beyond its government roots.
Market Voices: A Range of Reactions
Eleanor Vance, Portfolio Manager at ClearSight Capital: "This isn't just a beat; it's a validation of their business model transition. The explosive growth in U.S. commercial RDV shows they're not just booking current sales, but building a multi-year foundation. The Rule of 40 at 127% is frankly staggering."
Marcus Thorne, Independent Tech Analyst: "Let's not get carried away. A 105x forward P/E prices in perfection for a decade. One stumble in commercial adoption or a macro slowdown, and this house of cards tumbles. They're executing now, but the risk-reward is still severely skewed to risk."
Dr. Fiona Lee, Data Science Professor at Stanford: "The AIP numbers are the key takeaway. They demonstrate that complex AI operationalization, Palantir's core offering, has moved from niche to necessity for large enterprises. This quarter likely reflects early adopters; the true test is sustaining this pace."
Raj Patel, Retail Investor & Founder of 'Tech Threads' Substack: "The bears have been wrong for ten straight quarters! They keep talking about valuation while Karp & co. keep printing growth. That RDV number is a cannon shot across the bow of every short seller. This is a hold-for-decades compounder, not a trade."