Palantir $PLTR ( ▲ 6.85% ) is back in motion after its Q4 report snapped the stock out of a months-long lull. Analysts are lining up with praise for the company’s surging growth, expanding margins, and a wave of new AI-driven deals.
The big question now is whether retail traders come rushing back, too.
Growth Hits a New Gear
Morgan Stanley highlighted that Palantir delivered its fastest revenue growth as a public company, with sales up 70% year over year. That marks a sharp acceleration from prior quarters and easily topped expectations that were already set high.
For a company of Palantir’s size, that kind of growth rate is rare air. It suggests demand for its AI-powered platforms is still ramping, not plateauing.
Margins That Make Software Dreams
Citigroup pointed to eye-popping profitability metrics. Operating margins reached 57%, well ahead of guidance, while adjusted free cash flow margin hit 55%, showing Palantir is converting a large chunk of revenue into real cash.
Operating cash flow came in far above expectations, and analysts noted the company’s “rule of 40” score, a key SaaS health metric, was an eye-catching 127%. In plain English, Palantir is growing fast and making serious money doing it.
AI Deals Are Getting Bigger and Longer
Bookings also surged, with total contract value hitting a record $4.26 billion, up 138% from a year ago. Much of that strength came from large, multi-year deals tied to Palantir’s AI Platform, or AIP, especially with US commercial customers.
The company closed 180 deals worth at least $1 million, including 61 above $10 million. Remaining deal value in US commercial jumped 145% year over year, showing a thick pipeline of future revenue, even if longer contracts can make near-term growth look lumpier.
Now Comes the Retail Test
Wall Street clearly loves the numbers. But Palantir $PLTR’s stock story has always been powered as much by retail enthusiasm as institutional models.
Shares are still about 25% below their early November highs, and newer retail darlings like Sandisk $SNDK have grabbed some of the spotlight. The fundamentals are firing on all cylinders. Whether that is enough to reignite the retail crowd could determine how explosive the next leg higher really is.