Crushing expectations! Palantir(PLTR.US) revenue guidance sparks surge after the rally, AI concept leader makes a comeback

Data mining company Palantir Technologies Inc. (PLTR.US) issued a revenue outlook for fiscal year 2026 that far exceeds Wall Street expectations, injecting confidence into its stock price which has been sluggish this year. The Denver-based company announced on Monday that it expects full-year revenue to reach $7.18 billion to $7.2 billion, crushing the analyst average estimate of $6.27 billion. Its sales forecast of approximately $1.53 billion for the current quarter also beat market expectations.

Following the announcement, the stock surged about 8% in after-hours trading. Previously, its share price had fallen 29% from its high in November last year, with a total decline of 17% from the start to the close of 2026. Despite this, the stock’s price-to-earnings ratio remains high at around 141, ranking among the top of the S&P 500 index components. As of press time, the stock was up 5.6% pre-market.

According to the statement, this company, which relies heavily on government contracts for most of its revenue, saw its fourth-quarter revenue surge 70% year-over-year to $1.41 billion, with earnings per share of 25 cents surpassing the average forecast of 23 cents.

Recently, Palantir has become a focal point of public debate for assisting the Trump administration’s large-scale immigration deportation policies. Controversy has continued to escalate following the federal agents’ killing of two protesters in Minneapolis.

The company has long provided services to U.S. Immigration and Customs Enforcement (ICE), helping to build individual profiles. Its defense business spans multiple governments, with strong growth in enterprise sectors, making it one of the biggest beneficiaries of the AI boom. Over the past two years, Palantir’s stock price has soared nearly 800%, with a market value increase of about $315 billion.

At the end of last year, hedge fund manager Michael Burry, known for shorting the subprime crisis, disclosed a short position against Palantir, causing its stock to decline. He also warned on social media platform X about the risks of an AI bubble.

In a letter to shareholders, CEO and co-founder Alexander Karp cited the legacy of American historian Christopher Lash, describing the company’s accelerated revenue growth as a “cosmic-level return” for supporters. He characterized Palantir’s software systems used by agencies like ICE and the Department of Defense as “capable of preventing unconstitutional invasions of citizens’ privacy,” though he did not specify how the technology achieves this.

The Palantir application ELITE, purchased by the U.S. Department of Homeland Security, provides ICE law enforcement officers with actionable data, including AI-extracted addresses. The Monday earnings report also showed that Palantir’s revenue in the U.S. government and commercial sectors exceeded expectations in the fourth quarter: government revenue of $570 million (expected $521.5 million), and commercial revenue of $507 million (expected $478.7 million).