Palantir stock jumps 8% on strong FY26 revenue forecast, CEO Alex Karp praises ‘Stellar, unusual, sublime’ performance

Shares of Palantir Technologies rose 8% on Nasdaq in after-hours trading following news that the company’s revenue forecast for FY26 was well ahead of Wall Street estimates. At press time, it was up 6.97% to $158.06 per share.

The data analytics company said it expects FY26 revenues to rise to about $7.19 billion, or a 61% increase, according to a Bloomberg report. Additionally, Palantir reported a sales forecast of close to $1.53 billion for the current quarter; which exceeded Wall St.’s estimates.

Palantir stock performance — signs of better things to come?

Palantir, which relies heavily on U.S. government contracts for revenue, saw Q4 earnings rise 70% to $1.41 billion. Earnings per share (EPS) were 25 cents, above the average estimate of 23 cents, the report said.

Palantir also beat Q4 expectations for U.S. government and U.S. commercial revenue in its Feb. 2 report. The agency reported U.S. government revenue of $570 million, versus analysts’ expectations of $521.5 million, while commercial revenue was $507 million, versus the average estimate of $478.7 million.

Immediately following the news, Bloomberg reported that shares closed at $147.77, up 5%.

This rise is significant given last year’s poor performance. Palantir shares had lost 29% of their value since their peak in November, just before the company reported results in December, and were down 17% earlier this year.

The Bloomberg report noted that Palantir shares are still trading at about 141 times expected earnings, among the highest in the S&P 500.

Alex Karp praises the company: ‘Truly iconic performances in history’

On the investor call, Palantir CEO Alex Karp praised the company’s performance as “one of the truly iconic performances in the history of corporate performance or technology,” Fortune reported.

He also said that these results would be “excellent, extraordinary and spectacular” for an early-stage company, but too big for Palantir, which is over 20 years old: “You can’t expect a company like ours to perform at this level.”

Bloomberg reported that Chief Technology Officer Shyam Sankar said that usage of Maven, an AI-powered mission control system for the U.S. military in which Palantir plays a key role, is “at an all-time high.” He said the system, which enables artificial intelligence to help identify targets among other functions, will continue to be implemented this year.

In a shareholder letter citing the legacies of former Chinese leader Deng Xiaoping and American historian Christopher Lasch, Karp described the company’s growing revenue as a “cosmic reward” for the company’s backers, according to the BB report.

Palantir’s contracts for the US government and ICE draw criticism

The company’s role in helping United States President Donald Trump mass deporte immigrants has made it a lightning rod for criticism; criticism that has accelerated in recent weeks after federal agents fatally shot two protesters in Minneapolis.

Palantir has long served U.S. Immigration and Customs Enforcement (ICE), allowing authorities to build dossiers on individuals. It also has defense ties with governments around the world, is benefiting from strong corporate business growth and is emerging as one of the biggest publicly traded beneficiaries of the AI ​​boom. The company’s shares have increased by almost 800% in the last two years, adding almost $315 billion to its market value.

Late last year, hedge fund manager Michael Burry, who became a household name after his bets against mortgages in the late 2000s were featured in the movie The Big Short, announced bearish bets on Palantir, causing the company’s shares to tumble. Burry had widely warned about an AI bubble on social media platform X at the time.

Karp described Palantir’s software system, used by ICE and the Department of Defense among government users, as “capable of preventing the government from unconstitutionally intruding into the private lives of citizens.” Karp did not specify how Palantir’s technology prevents such intrusions.

The Department of Homeland Security (DHS) has acquired a Palantir app called ELITE that provides actionable data, including AI-derived addresses, to ICE and Enforcement and Removal Operations officers.

(With input from Bloomberg)