Palantir Technologies’ fourth quarter results were well received by the market, reflecting significant revenue growth driven by expanding adoption of its AI-powered platforms in the United States. Management attributed performance to rapid customer expansion, particularly in commercial and government sectors, and highlighted that U.S. business now comprises a larger share of total revenue. CEO Alexander Karp emphasized that customers are moving beyond experimentation, stating, “Our customers aren’t tentatively trying AI; they’re committing to it at scale with Palantir Technologies as the driving force.”
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Palantir Technologies (PLTR) Q4 CY2025 Highlights:
- Revenue: $1.41 billion vs analyst estimates of $1.34 billion (70% year-on-year growth, 4.9% beat)
- Adjusted EPS: $0.25 vs analyst estimates of $0.23 (8.6% beat)
- Adjusted Operating Income: $798.5 million vs analyst estimates of $701.1 million (56.8% margin, 13.9% beat)
- Revenue Guidance for Q1 CY2026 is $1.53 billion at the midpoint, above analyst estimates of $1.33 billion
- Operating Margin: 40.9%, up from 1.3% in the same quarter last year
- Billings: $1.50 billion at quarter end, up 70.1% year on year
- Market Capitalization: $323.9 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Palantir Technologies’s Q4 Earnings Call
- Mariana Perez Mora (Bank of America): Asked about changing attitudes among commercial customers toward AI adoption in 2026 and whether hesitancy remains. CEO Alexander Karp responded that U.S. customers now expect rapid value delivery and are more willing to reshape their organizations around Palantir Technologies’ products, while international adoption lags.
- Mariana Perez Mora (Bank of America): Inquired about opportunities for expanding the company’s ship OS platform into other areas of U.S. defense reindustrialization, such as ammunition and missile production. CTO Shyam Sankar confirmed growing interest from multiple defense sectors to replicate these solutions for a wider range of weapon systems and sustainment operations.
- Dan Ives (Wedbush): Questioned whether Palantir Technologies is capturing larger portions of customer budgets in both commercial and government sectors. CEO Alexander Karp and CRO Ryan Taylor explained that customers are entrusting Palantir Technologies with more mission-critical problems, leading to deeper, higher-value relationships and greater revenue concentration per client.
- Dan Ives (Wedbush): Asked if the company’s growth is driven by new customer acquisition or deeper engagement with existing clients. CFO David Glazer highlighted that the most significant revenue growth is resulting from existing clients expanding their use of Palantir Technologies’ platforms across multiple business areas.
- Jeff Jay (Shareholder): Asked about prospects for international business reacceleration, particularly in Europe. CEO Alexander Karp and CTO Shyam Sankar expressed skepticism about near-term international growth due to procurement and political barriers, emphasizing the company’s current focus on the U.S. market.
Catalysts in Upcoming Quarters
In upcoming quarters, our analysts are watching (1) the pace at which existing U.S. enterprise and government clients expand their adoption of Palantir Technologies’ platforms, (2) progress in product enhancements and new AI capabilities that drive additional customer value, and (3) signs of renewed traction or shifts in international markets, particularly Europe. Continued hiring of top-tier technical talent and execution on large government contracts will also be important markers of Palantir Technologies’ ability to sustain its current growth trajectory.
Palantir Technologies currently trades at $136.87, down from $147.76 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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