Palantir crushes estimates as U.S. commercial revenue surges 137%

Palantir Technologies (NASDAQ:PLTR) shares jumped in after-hours trading Monday after the data analytics powerhouse reported fourth-quarter and full-year 2025 results that "crushed" consensus expectations.

The company reported a 70% year-over-year increase in fourth-quarter revenue to $1.41 billion, driven by explosive demand for its Artificial Intelligence Platform (AIP) in the U.S. commercial sector.

The Denver-based firm’s performance was highlighted by its U.S. commercial revenue, which skyrocketed 137% year-over-year to $646 million.

This growth underscores the rapid adoption of Palantir’s "bootcamp" strategy, where enterprise customers quickly transition from pilot phases to company-wide AI integration.

Palantir's "Rule of 40" score—a key metric for software companies measuring the sum of revenue growth and profit margin—reached an unprecedented 127% for the quarter.

For the full year 2025, revenue grew 56% to $4.48 billion.

The company also demonstrated significant operational leverage, posting GAAP net income of $476 million for the fourth quarter.

Looking ahead, Palantir issued aggressive guidance for 2026, forecasting full-year revenue growth of 61% and U.S. commercial revenue growth of 115%.

The company ended the year with a fortress balance sheet, holding $7.2 billion in cash and short-term securities.