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Palantir Technologies (PLTR) is trading higher following a strong Q4 earnings report last night. The data analytics software company and government intelligence contractor delivered upside EPS and significant upside revenue, which surged 70% yr/yr to $1.41 bln, marking the highest growth rate in Palantir's history as a public company. Results were driven by relentless momentum in its U.S. business, while Q1 and FY26 revenue guidance came in well above expectations.

• Total revenue increased 70% yr/yr to $1.41 bln, Palantir's fastest growth rate ever as a public company. Growth is no longer being driven by one-off contracts, but by compounding adoption across Palantir's U.S. customer base, signaling a structural shift in demand rather than a cyclical spike.
• US commercial revenue jumped 137% yr/yr and 28% sequentially to $507 mln, continuing to outpace broader enterprise software trends. US government revenue rose 66% yr/yr to $570 mln, an impressive showing amid heightened global security needs. The US commercial business is emerging as a key engine, with customers rapidly expanding usage beyond initial deployments, defying traditional enterprise software adoption curves.
• Management cited accelerating demand for its AIP (Artificial Intelligence Platform), which is driving compounding growth across both US commercial and government segments.
• Palantir closed its largest total contract value (TCV) quarter ever at $4.3 bln. Trailing 12-month revenue from the top 20 customers increased 45% yr/yr to $94 mln per customer, signaling deeper, more durable customer commitments.
• Q4 adjusted operating margin reached 57%, exceeding prior guidance by 500 bps, while FY25 adjusted operating margin totaled 50%.
• The stock had weakened over the past six weeks amid rotation out of AI-related names, leaving sentiment muted heading into the report.

Briefing.com Analyst Insight:

Palantir delivered a standout quarter that showcased both accelerating revenue growth and exceptional margin leverage, highlighted by record US commercial momentum and unprecedented contract activity. Demand for AIP continues to exceed expectations, with customers not merely experimenting with AI but deploying it at scale across mission-critical operations. While valuation remains elevated following the post-earnings rally, the magnitude of the guidance upside for Q1 and FY26, combined with compounding growth dynamics and best-in-class margins, reinforces Palantir's position as a core AI infrastructure provider for both government and enterprise customers. The recent pullback into the print appears to have set the stage for a favorable investor response.