Key takeaways
Powered by lumidawealth.com
- Palantir Technologies reported record Q4 revenue of $1.41B (+70% YoY) and net income of $609M, beating expectations.
- Growth is broad-based: U.S. government revenue $570M (+66% YoY) and U.S. commercial revenue $507M (more than doubled YoY); customer count reached 954.
- Management guided 2026 revenue of ~$7.18B–$7.20B, implying another step-up in scale after $4.475B full-year 2025 revenue (above prior guidance).
- Investor debate is shifting to valuation + headline risk: the stock remains among the priciest in the S&P 500 on a sales basis, and scrutiny around immigration-related work is intensifying.
What Happened?
Palantir posted another record quarter, reporting $1.41 billion in revenue for the final three months of 2025, up 70% year over year, alongside record net income of $609 million. The company cited strong demand for its AI-enabled data analytics from both U.S. government agencies and commercial customers. It also highlighted large contract momentum, including a major U.S. Navy award and a new U.K. defense contract.
Why It Matters?
The results reinforce Palantir’s positioning as a scaled AI-software vendor benefiting from two durable spend categories: government modernization (defense, maintenance, intelligence-adjacent analytics) and enterprise adoption of AI/data platforms. The mix matters for investors: accelerating U.S. commercial growth suggests Palantir isn’t solely a government story, while continued government strength supports visibility and deal size.
However, the market is also pricing in a lot of perfection. Even after a pullback earlier in 2026, Palantir’s market cap (~$350B in the article) implies a demanding valuation relative to sales, which raises sensitivity to any growth deceleration or margin disappointment. Separately, political and reputational scrutiny tied to work with immigration enforcement adds a non-financial risk factor that can affect customer decisions, employee sentiment, and headline volatility.
What’s Next?
The near-term focus will be on execution against 2026 revenue guidance (~$7.18B–$7.20B) and whether U.S. commercial momentum remains strong enough to justify premium valuation multiples. Watch for updates on large government contract pipeline (including defense and allied governments), margin sustainability as the business scales, and any escalation of political scrutiny that could impact procurement optics or customer willingness to expand deployments.
