Palantir shares rose after stronger-than-expected sales outlook

Palantir has seen its shares soar by nearly 800 per cent over the past two years, adding almost US$315 billion in market value. Photo by INA FASSBENDER/AFP via Getty Images/Postmedia files

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Palantir Technologies Inc. rose following a revenue forecast for fiscal 2026 that significantly exceeded Wall Street expectations, a boost for the data analytics company after its shares have gotten off to a lackluster start so far this year.

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Annual revenue will gain 61 per cent to about US$7.19 billion, the Denver-based company said Monday in a statement. Analysts, on average, estimated US$6.27 billion. Palantir forecast sales in the current quarter of about US$1.53 billion, which also beat expectations.

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The shares increased 4.8 per cent at 10:01 a.m. in New York on Tuesday. The stock had dropped 29 per cent from its November peak, reached right before Palantir last reported results, and was down 17 per cent to start 2026 through the close. Still, the shares trade for about 141 times expected earnings, among the highest in the S&P 500.

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Palantir, which relies on government contracts for the lion’s share of its United States revenues, also saw fourth-quarter revenue grow 70 per cent to US$1.41 billion, it said in the statement. Earnings per share were 25 cents U.S., which beat the average estimate of 23 cents U.S.

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Speaking to investors after the results were reported, chief technology Shyam Sankar said the use of Maven — an AI-enabled mission control system for the U.S. military in which Palantir plays a significant role — is at “an all-time high.” The system, which can enable AI to help identify targets among other functions, will continue to be rolled out this year, he said.

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The company’s role in assisting Trump’s mass deportation of immigrants has also made it a lightning rod for criticism, which has accelerated in recent weeks after federal agents fatally shot two protesters in Minneapolis.

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Palantir has long supplied services to U.S. Immigration and Customs Enforcement, enabling officials to build dossiers on individuals. It also has defence tie-ups with governments around the world, enjoyed strong enterprise business growth and has emerged as one of the biggest publicly traded beneficiaries of the artificial intelligence boom. The company has seen its shares soar by nearly 800 per cent over the past two years, adding almost US$315 billion in market value.

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In its earnings report Monday, Palantir also beat expectations on U.S. government and U.S. commercial revenue in the fourth quarter. U.S. government revenue for the quarter was US$570 million, compared with analysts’ forecast of US$521.5 million, while commercial revenue was US$507 million. Analysts, on average, estimated US$478.7 million.

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