PLTR Stock Rises as Palantir Beats Wall Street Sales Expectations
PLTR stock climbed after Palantir Technologies Inc. released a fiscal 2026 revenue forecast that came in well above Wall Street expectations, offering a boost to the data analytics company after a weak start to the year.
The company said annual revenue is expected to increase 61% to around $7.19 billion. Analysts had estimated about $6.27 billion. Palantir also projected current-quarter sales of roughly $1.53 billion, exceeding market forecasts.
Shares rose 4.8% in New York trading following the announcement. The stock had fallen 29% from its November peak, reached just before the company last reported earnings, and was down 17% at the start of 2026 through the previous close. Despite the pullback, the shares trade at around 141 times expected earnings, among the highest valuations in the S&P 500.
Palantir reported fourth-quarter revenue growth of 70% to $1.41 billion. Earnings per share came in at 25 cents, topping the average analyst estimate of 23 cents.
US government business continued to play a major role in results. Fourth-quarter government revenue totaled $570 million, beating forecasts of $521.5 million. US commercial revenue reached $507 million, compared with expectations of $478.7 million.
During discussions with investors, Chief Technology Officer Shyam Sankar said usage of Maven, an AI-enabled mission control system for the US military, is at an all-time high. He said the system will continue to roll out through the year.
Palantir’s involvement with US Immigration and Customs Enforcement and its role in assisting mass deportation efforts have drawn criticism. The company has long provided tools that help officials build dossiers on individuals and also maintains defense partnerships with governments worldwide.
Despite controversy, Palantir has benefited from strong enterprise demand and the artificial intelligence boom. Over the past two years, the company’s shares have surged nearly 800%, adding close to $315 billion in market value.
Late last year, hedge fund manager Michael Burry disclosed bearish positions in Palantir, which pressured the stock. Burry warned broadly about a potential AI bubble at the time.
In a shareholder letter, Chief Executive Officer and co-founder Alexander Karp described the company’s accelerating revenue growth as a “cosmic reward” for supporters. He said Palantir’s software, used by agencies including ICE and the Department of Defense, is capable of preventing unconstitutional intrusions into citizens’ private lives, without detailing how.
The Department of Homeland Security has purchased a Palantir application named ELITE, which provides actionable data, including AI-extracted addresses, to Enforcement and Removal Operations officers.
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