Palantir Earnings Lift 2026 Guidance
Palantir earnings showed Q4 2025 revenue strength and raised 2026 guidance, prompting traders to reprice and shift flows into growth and defense exposure.
KEY TAKEAWAYS
- Q4 2025 revenue reached $1.4 billion, up 70.0% year-over-year.
- Guidance sets 2026 revenue at $7.2 billion, implying about 61.0% growth.
- Backlog rose to about $4.4 billion, including a potential $10.0 billion U.S. Army framework.
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Palantir Technologies reported Q4 2025 results prior to February 25, 2026, showing rapid revenue growth that led management to raise its 2026 revenue outlook. Growth accelerated as U.S. commercial adoption and defense contracts expanded the company’s profile.
Quarterly Results and 2026 Guidance
Palantir posted Q4 2025 revenue of $1.4 billion, a 70.0% increase year-over-year, driven largely by a surge in commercial sales. U.S. commercial revenue rose 137.0% year-over-year and 28.0% quarter-over-quarter, expanding the company’s commercial footprint. U.S. government revenue grew 66.0% year-over-year and 17.0% quarter-over-quarter, pushing total U.S. business revenue above $1 billion for the quarter.
Management set 2026 revenue guidance at about $7.2 billion, implying 61.0% growth. U.S. commercial sales are expected to exceed $3.1 billion, with adjusted operating income projected near $4.1 billion. The outlook assumes continued U.S. market acceleration, adoption of Palantir’s AIP offering, and steady contract execution.
Defense and Commercial Contract Growth
Palantir’s total contract value reached a record $4.3 billion in Q4, while remaining deal value climbed 145.0% to roughly $4.4 billion, expanding backlog and revenue visibility. This backlog includes a potential U.S. Army enterprise agreement valued at $10.0 billion over 10 years under an existing enterprise framework.
In December 2025, the U.K. Ministry of Defence awarded Palantir a £240 million, three-year contract without tender to provide data analytics supporting strategic, tactical, and live operational decision-making.
Commercial momentum was evident in client growth and deal size. The customer base increased 34.0% year-over-year to 954 clients. The company closed 180 deals at or above $1 million, including 84 above $5 million and 61 above $10 million. In February 2026, Airbus extended a multi-year partnership for its Skywise aviation data platform.
Management’s 2026 guidance reflects expectations of sustained U.S. market growth, continued AIP adoption, and consistent contract execution.
