Palantir Technologies CEO Alex Karp attends the 56th annual World Economic Forum (WEF) meeting in Davos, Switzerland, January 20, 2026.
Denis Balibus | Reuters
Palantir led Wall Street fourth quarter Many businesses believe that the US government race to buy it artificial intelligence tools.
Shares rose 5% after the call.
Here’s the company vs. LSEG estimates:
- Earnings per share: Adjusted 25 cents vs. 23 cents expected
- Input: $1.41 billion vs. $1.33 billion expected
Revenue was up 70% from $827.5 million in the year-ago period. The Denver-based firm had sales of $4.48 billion in the fiscal year
US revenue for the government and commercial sectors rose to $570 million and $507 million, respectively. Those results consistently beat analysts’ estimates polled by FactSet.
chief executive officer Alex Karp In an interview with CNBC, Morgan Brennan called the earnings “the best performance I’ve seen in technology in the last decade.”
“If you’re not spending it on that, you’re not spending it on something that’s part of maintaining momentum,” he added.
Going forward, the AI-powered software provider said it expects revenue of $1.532 billion to $1.536 billion in the first quarter, well above FactSet’s forecast of $1.32 billion. For fiscal 2026, the company reported revenue of $7.182 billion to $7.198 billion, beating FactSet expectations of $6.22 billion.
Palantir, which makes software and data tools sold to businesses and government agencies such as the Department of Defense, the Internal Revenue Service and the Department of Homeland Security, has seen increased demand for AI systems and widespread interest from retail investors.
Karp noted the continued adoption of its tools by the US government in a segment that saw 66% growth.
“America is deadlier, more confident, more distant from our adversaries and, frankly, from our allies,” he said.
According to Karp, demand for its products is so strong, and Palantir is “so busy in the US,” that it has stopped selling new products to allies.
Hosted by Palantir success call At 17.00 with analysts.
Much of that demand came from the Department of Defense, Karp said. The company signed an agreement last summer A contract worth up to 10 billion dollars with the US Army to support its software and data needs. Palantir also signed on A $448 million deal Acceleration of shipbuilding in December with the US Navy.
In recent weeks, Palantir has faced backlash over its work with the Department of Homeland Security, specifically its work. US Immigration and Customs Enforcement after federal agents shot and killed two protesters in Minneapolis.
“If you’re going to criticize ICE, you should be protesting more Palantir,” he said said CNBC. “Our product, in fact, at its core, requires people to comply with Fourth Amendment data protection.”
Palantir’s U.S. commercial revenue more than doubled year-over-year, and remaining U.S. commercial deal value rose 145% year-over-year to $4.38 billion. period, Palantir announced the partnership with a leading AI chip manufacturer Nvidia.
Net income was more than $608 million, or 24 cents per share. The company reported net income of $79 million, or 3 cents per share, a year ago.
Investors set the bar high for Palantir in its earnings report. A favorite among retail investors, the stock has gained 81% in the past year. But some Wall Street analysts are concerned about the stock’s oversupply, with shares expected to fall by around 15% in 2026.
A short seller in November Michael Berry The software analytics firm and chip maker have revealed a bet against Nvidia. At that time Karp said CNBC it was a movement “bats are crazy” and called “market manipulation”.
Then the stock wrapped around him the worst month For two years, investors have abandoned AI stocks due to valuation issues and concerns about a bubble.
a letter to the shareholders, Karp called Palantir’s gains “pure and ill-conceived” despite increasing pressure on AI companies to focus on fundamentals.
The company’s commercial segment benefited from the need for software to provide structure to large language models, he added.
“Anything that doesn’t focus passionately on the value created by these technical systems, the cat-caught mice, will eventually be grayed out and forgotten,” Karp wrote.
