Palantir $PLTR ( ▲ 6.13% ) just dropped one of its loudest quarters yet, smashing both earnings and revenue expectations and sending the stock higher after hours. The defense, intelligence, and AI software company continues to flex serious growth muscle, even after a monster multi-year run.
AI Engine Still in Overdrive
Palantir posted adjusted EPS of $0.25 versus expectations of $0.23. Revenue came in at $1.41 billion, comfortably ahead of the $1.34 billion Wall Street was looking for. Even more eye-catching, Q4 sales jumped 70% year over year, blowing past the 62% growth analysts had penciled in.
This is the kind of growth you usually see from smaller startups, not a company already valued like a major tech player. Palantir’s mix of government contracts and rapidly expanding commercial AI deals is clearly still accelerating.
Guidance Just Raised the Bar
If the quarter was strong, the outlook was even stronger. Palantir guided for Q1 2026 revenue between $1.532 billion and $1.536 billion, far above the $1.33 billion analysts expected. Full-year 2026 revenue is projected between $7.182 billion and $7.198 billion, crushing the $6.30 billion consensus.
Profit guidance followed the same script. The company sees Q1 adjusted operating income between $870 million and $874 million, well ahead of the $641 million estimate. For the full year, Palantir expects $4.126 billion to $4.142 billion in adjusted operating income, compared to expectations of $3.14 billion.
CEO Alex Karp called it “one of the truly iconic performances in the history of corporate performance,” which, coming from him, is saying something.
Retail Love Story, Complicated
The after-hours pop marks a shift in tone. Despite strong fundamentals, Palantir $PLTR had cooled off with retail traders in recent months and still sits roughly 25% below its November all-time high. That came even as major indexes stayed mostly flat.
Long-term holders are hardly complaining though. Over the last three years, the stock is still up around 1,500%, meaning sky-high expectations were already baked in. That has made each earnings report a high-stakes test.
Meanwhile, newer retail favorites like Sandisk $SNDK, which has more than tripled during Palantir’s recent slump, have pulled short-term traders toward faster momentum plays. But based on this reaction, Palantir’s blowout quarter might be enough to pull some of that attention back.