Palantir Earnings in Charts: U.S. Business Fuels Record-Breaking Quarter
$Palantir Technologies Inc.(PLTR)$
Core Financial Indicators
Revenue: $1.41 billion, exceeding expectations of $1.33 billion, a 70% year-over-year increase, surpassing expectations by 4.88%.
Earnings Per Share (EPS): $0.24, higher than analysts' expectations of $0.182, a 698.83% year-over-year increase.
Key Highlights
Positive signals in the financial report
Palantir's customer count increased 34% year-over-year and 5% quarter-over-quarter. At the same time, the Net Revenue Retention rate reached 139%, reflecting that Palantir not only retained the majority of its customers but also achieved additional revenue growth from existing clients.
As the company's revenue scale expands and unit costs are diluted, margins continue to rise.
Q4 Revenue Breakdown
The U.S. business continues to expand its share of the company's overall revenue, demonstrating strong growth momentum. Specifically:
U.S. commercial revenue grew 137% year-over-year and 28% quarter-over-quarter, reaching $507 million. U.S. government revenue increased 66% year-over-year and 17% quarter-over-quarter, amounting to $570 million. In contrast, overseas revenue growth appears to be slower.
A question worth discussing is why Palantir has a competitive advantage. Obtaining defense qualifications is characterized by long cycles. Acquiring DoD IL6 (U.S. Department of Defense's highest secret level) typically takes 18-36 months. Moreover, the cycle of trust accumulation is even longer. The company has been established for over 20 years, accumulating more know-how in the defense sector. Although there are companies like Anduril Industries in this field, Palantir has differentiated advantages in terms of decision-making priorities, latency, and application scenarios. Palantir focuses more on acting as a military brain for data processing and decision support, while Anduril emphasizes building intelligent limbs, i.e., autonomous physical equipment systems combining software and hardware.
Earnings Guidance
2026 First Quarter Revenue: Revenue is expected to be between $1.532 billion and $1.536 billion, with the midpoint higher than analysts' expectations of $1.32 billion.
Full Year 2026 Revenue: The company forecasts full-year revenue to be between $7.182 billion and $7.198 billion, also higher than FactSet's expectation of $6.22 billion.
Summary
Overall, the earnings report exceeds expectations. Investors may still see revenue continue to reach new highs in the next quarter.
The stock price increased by more than 8% after the earnings release.
~Valuation:
After announcing earnings, Palantir's valuation dropped from a P/E ratio of over 340 to 216.
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