Why Is Palantir Stock Up 11% Premarket Today? Strong 2026 Forecast

Palantir Technologies Inc. stock surged over 11% in premarket trading on February 3, 2026, following the company’s impressive fourth-quarter earnings report released after market close on February 2. The data analytics and AI software provider delivered results that significantly exceeded Wall Street expectations, with fourth-quarter revenue growing 70% year-over-year to $1.41 billion compared to analyst estimates of $1.33 billion.

The company’s forward guidance for fiscal 2026 proved even more striking, with projected annual revenue between $7.18 billion and $7.20 billion, substantially above the analyst consensus of $6.22 billion.

Q4 Revenue Growth and Profitability Fuel Earnings Beat

Palantir’s fourth-quarter results demonstrated the company’s accelerating growth trajectory, with revenue climbing 70% from $827.5 million in the prior-year period. Earnings per share reached 25 cents on an adjusted basis, beating the expected 23 cents.

For the full fiscal year, total sales reached $4.48 billion, reflecting strong demand across both government and commercial sectors. U.S. government revenue totaled $570 million while U.S. commercial revenue hit $507 million, both exceeding analyst projections.

The company’s profitability showed remarkable improvement, with net income totaling more than $608 million, or 24 cents per share, compared to just $79 million, or 3 cents per share, a year earlier. CEO Alex Karp characterized the results as “indisputably the best results that I’m aware of in tech in the last decade” during a CNBC interview.

The government segment saw particularly strong growth of 66%, driven by Department of Defense contracts including a $10 billion U.S. Army deal and a $448 million Navy shipbuilding contract.

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2026 Revenue Guidance Surpasses Wall Street Expectations

Palantir’s fiscal 2026 guidance proved to be the highlight for investors, with projected revenue of $7.18 billion to $7.20 billion representing a dramatic increase over the analyst consensus estimate of $6.27 billion.

First-quarter revenue guidance of approximately $1.53 billion also substantially exceeded the expected $1.32 billion. This robust outlook reflects continued strong demand for the company’s artificial intelligence platform and data analytics tools across both government agencies and commercial enterprises.

The company’s U.S. commercial segment showed particularly impressive momentum, with revenues more than doubling from the prior year and remaining commercial deal value rising 145% year-over-year to $4.38 billion. Palantir also announced a strategic partnership with leading AI chipmaker Nvidia during the quarter, further positioning the company to capitalize on the AI boom.

Despite shares being down approximately 15% year-to-date through February 2, the stock had rallied 81% over the previous 12 months, demonstrating sustained investor confidence in the company’s AI-driven growth strategy.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.