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Palantir Technologies declared that “we are n of 1” in the artificial intelligence software market on Monday, as the data analytics group reported another set of recording results quarterlysending its shares soaring nearly 8% in late trading.
Investors cheered a strong combination of faster growth, fatter margins and an earnings outlook that “smashed consensus expectations,” prompting a sharp turnaround in a stock that had stumbled at the start of the year.
‘Unbelievable’ quarter tops forecasts
The Denver-based company reported fourth-quarter revenue of about $1.41 billion, which topped analyst expectations and marked another record period for the company famously named after a magician. Lord of the Rings thing.
Adjusted earnings per share came in at 25 cents, two cents above consensus, while net income rose to about $609 million, helping deliver one of Palantir’s strongest profits to date.
Management highlighted a “Rule of 40” score – the sum of revenue growth and operating margin – at an “unbelievable” level of 127%. CEO Alex Karp claims that Palantir is the only company that “has chosen to focus exclusively on scaling the operational leverage created by the rapid development of AI models, a trend that we first called ‘commodity cognition’ before others began to replicate it.” that
Palantir’s AI Platform remains a key growth engine, especially in the US commercial market, where revenue and number of customers are increasing at a rapid pace.bootcamp” go-to-market model — short, intensive workshops where Palantir teams build live applications with customer data in days — compresses sales cycles from months to weeks in some cases, with many organizations signing seven-figure deals shortly after attending.
Andreessen Horowitz Mark Andrusko wrote a few days ago about the “Palantirization of everything” and how the “universal playbook” is the envy of Silicon Valley, but difficult to copy. “The Palantir pitch – parachute a small team into a chaotic environment, wire together homegrown, siled systems, and ship a customized working platform within months – is compelling,” he wrote, but Palantir is a “category of one,” similar to how many companies positioned themselves as platforms in the 2010s, but few are true.
Government backbone, commercial breakout
While Wall Street’s focus has largely turned to Palantir’s business listings, the company’s government business remains a cornerstone, supplying software to the US Army, other branches of the Pentagon and military allies. Government revenue has continued to grow in recent times, even as management acknowledges continued macro headwinds in Europe and the volatility tied to large contracts. that
Looking ahead to 2026, Palantir forecasts full-year revenue between $7.18 billion and $7.2 billion, which represents growth of nearly 60% and easily beat consensus expectations.
For the current quarter, the company guided for about $1.53 billion–$1.54 billion in sales, beating analyst estimates and signaling a slight slowdown in enterprise AI spending despite broader market volatility.
For this story,luckJournalists use generative AI as a research tool. An editor verifies the accuracy of the information before publication.
This story was originally featured on Fortune.com
