Palantir reported Q4 2025 revenue of $1.41 billion, up 70% year-over-year and $80 million above Wall Street estimates. The earnings beat continues a pattern: strong AI Platform adoption driving growth across both commercial and defense sectors.
U.S. commercial revenue reached $507 million, up 137% from a year ago. Government revenue hit $570 million, a 66% increase. For the full year, Palantir posted $4.48 billion in revenue, up 56%.
The real story is in the guidance. Palantir projects FY2026 revenue between $7.18 billion and $7.20 billion, roughly $1 billion above consensus. That's 61% growth, with U.S. commercial expected to grow 115%. These aren't incremental beats, they're material gaps between what the market expected and what the company says is coming.
CEO Alex Karp attributed growth to defense contracts and enterprise AI adoption. Recent wins include a $10 billion Army contract for software and data services, and a $448 million Navy deal to modernize shipbuilding supply chains. The company's adjusted operating margin sits at 51% with $6.4 billion in cash.
The context matters here. Palantir's AI Platform, which packages large language models with its ontology-based data management, is resonating in sectors where data security and compliance matter. Defense contractors and regulated enterprises need AI that works with existing systems and audit trails. That's Palantir's lane.
Notably, Karp said demand is so strong domestically that Palantir has delayed new product sales to allied governments. Translation: they're prioritizing U.S. customers because the pipeline is deep enough.
Shares rose 5% after hours. The stock has doubled in the past year, putting pressure on every earnings print. So far, the company is clearing those bars. Whether enterprises can deploy these tools fast enough to justify current valuations is the question for 2026.
Palantir's growth trajectory reflects broader enterprise AI adoption, but the company's defense exposure and proprietary data integration approach set it apart from pure-play AI vendors. The numbers suggest customers are moving from pilots to production.