Palantir Stock Rises on Q4 Strength, Defense Rally

Palantir stock rose on March 4, 2026, after the company reported Q4 2025 results and set FY2026 revenue guidance. The combination prompted an analyst upgrade and coincided with a defense-sector rally amid U.S.-Iran tensions.

Q4 Results and FY2026 Guidance

Palantir Technologies (PLTR) reported Q4 2025 revenue growth of 70% year over year and an adjusted operating margin of 57%, signaling expanding profitability. U.S. commercial revenue accelerated to 137% growth in the quarter, up from 121% in Q3 and 93% in Q2, reflecting rising adoption of the company’s AI platform.

The company generated $2.27 billion in free cash flow in FY2025, with a free-cash-flow margin of 51%, highlighting strong capital efficiency. Palantir’s FY2026 revenue guidance targets roughly $7.19–$7.2 billion, implying about 61% year-over-year growth. Management framed the year around profitability expansion and operating leverage.

Market Reaction and Defense Sector Momentum

On March 4, 2026, at least one analyst upgraded Palantir shares from Hold to Buy, citing the quarter’s strength and valuation compression. The analyst noted Palantir’s model-agnostic AI platform and deep Department of Defense integration. The stock rose 4.48% intraday.

This gain capped a five-day advance that lifted shares about 14%, adding roughly $44 billion in market value and bringing Palantir’s market capitalization to about $353 billion. The rally coincided with broader defense-sector strength and heightened U.S.-Iran tensions, which boosted investor interest in defense- and AI-exposed companies. The quarter’s results, guidance, and analyst upgrade reinforced a re-rating narrative focused on Palantir’s commercial growth and defense ties.