Overview
- Palantir posted record Q4 results with revenue of $1.41 billion, up 70% year over year, and adjusted EPS of $0.25 versus $0.23 expected, with gross margin reported around 82%.
- Commercial momentum accelerated, including 10 straight quarters of faster growth, U.S. commercial revenue up 137%, customer count up 34%, and net revenue retention at about 139%.
- Shares fell about 26% to 27% year to date and slipped 3.3% this week to $131.41 as software stocks sold off and valuation concerns pressured high-multiple names.
- Freedom Capital Markets lifted its rating two notches to Buy with a $170 target, and Truist reaffirmed Buy with a $223 target and raised its 2026 revenue and free cash flow expectations by more than $1 billion each.
- Insider filings show consistent selling since mid-November, including CEO Alex Karp’s early-February sales, which has weighed on sentiment despite strong AIP-led growth.