Palantir Earnings And Guidance Weigh On Shares

Palantir earnings showed strong Q4 growth and a $7.2 billion 2026 revenue target; shares slid after reports of removal from Bank of America's US 1 List.

February 24, 2026·1 min read
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Flat vector enterprise server cluster with dimming light reflecting Palantir earnings and market skepticism.

KEY TAKEAWAYS

  • Palantir reported Q4 revenue of $1.4 billion, up 70.0% year-over-year.
  • Adjusted operating margin reached 57.0% and management guided roughly $7.2 billion revenue for 2026.
  • Shares closed at $130.63 after reports of removal from Bank of America's US 1 List.

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Palantir Technologies reported strong fourth-quarter results and set ambitious 2026 revenue targets on Feb. 2, 2026. Despite rapid growth in Palantir earnings, shares declined later in February after reports the company was removed from Bank of America’s US 1 List.

Fourth-Quarter Results and Market Reaction

Palantir Technologies (PLTR) posted Q4 2025 revenue of $1.4 billion, a 70.0% increase year-over-year, with an adjusted operating margin of 57.0%, up 12.0 percentage points from a year earlier. The company issued guidance projecting roughly $7.2 billion in revenue for 2026, about a 61.0% increase from 2025. Management said it expects to outpace the 39.0% compound annual growth rate projected for the AI software market. Executives attributed the revenue and margin gains to accelerating AI adoption, which is expanding client deployments from discrete applications to enterprise-wide rollouts.

Reports on Feb. 19, 2026 that Palantir had been dropped from Bank of America’s US 1 List coincided with a selloff in the stock. Shares closed at $130.63 on Feb. 23, 2026 at 17:28 ET, roughly 37.0% below the Nov. 3, 2025 close of $194.17. The decline unfolded amid a broader market pullback and mixed analyst views that balance optimism about AI-driven growth against concerns over valuation and the risk of a re-rating. Investors are weighing the company’s rapid growth and margin gains against near-term market sentiment.

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