AI application leader Palantir takes the lead in growth: Q4 revenue up 70%, government and business demand is very strong

The U.S. government and an increasing number of companies have purchased Palantir’s AI tools. The company’s Q4 business exceeded Wall Street expectations, driving the stock up nearly 7% after hours.

According to the earnings report, Palantir achieved $1.41 billion in revenue in Q4 2025, a 70% year-over-year increase, surpassing analysts’ expectations of $1.33 billion; adjusted earnings per share were $0.25, exceeding the expected $0.23. Revenue contributions from the U.S. government and commercial sectors were $570 million and $507 million, respectively, both exceeding analyst forecasts.

Palantir is an American big data analytics company founded in 2004, focused on providing customized AI platforms for government and commercial clients. Its core products include Gotham for government and Foundry for commercial sectors. The company’s valuation increased 3.4 times in 2024 and 1.35 times in 2025, though it has pulled back somewhat since the beginning of this year.

In Q4, the company completed 180 deals worth at least $1 million each, 84 deals over $5 million, and 61 deals over $10 million. Its remaining U.S. commercial deal volume also grew 145% year-over-year to $4.38 billion, reflecting strong market demand for its products.

This performance also helped Palantir achieve a 56% year-over-year increase in total revenue for 2025, with U.S. market revenue up 75% to $3.32 billion, and a full-year net profit of $1.625 billion.

Palantir expects first-quarter revenue to be between $1.532 billion and $1.536 billion, higher than analysts’ forecast of $1.32 billion. For fiscal year 2026, the company’s total revenue is projected to reach between $7.182 billion and $7.198 billion, representing over 60% growth compared to 2025.

U.S. Market Dominance

Palantir CEO Alex Karp stated that the U.S. government continues to adopt its tools, with department revenue growing 66%. The U.S. has become more confident and capable in defense, but is also drifting further from allies.

He revealed that Palantir has invested heavily in the U.S., and market demand for its products is so strong that the company has paused selling new products to U.S. allied countries. Karp pointed out that the primary demand for Palantir’s products comes from the U.S. Department of Defense.

Last summer, the company signed a contract worth up to $10 billion with the U.S. Army to meet its software and data needs. Additionally, in December, Palantir signed a $448 million agreement with the U.S. Navy to accelerate shipbuilding production.

However, this has also drawn criticism, with some Americans strongly opposing the company due to its close cooperation with the U.S. Department of Homeland Security.

Karp claims that if people criticize ICE (Immigration and Customs Enforcement), they should protest and push for more deployment of Palantir’s products, as these products actually require users to comply with Fourth Amendment data protection regulations.