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Why Shares of Palantir Are Soaring in After-Hours Trading

By Scott Levine | February 02, 2026, 6:10 PM

Key Points

  • Palantir stock climbed nominally higher during regular trading hours today.

  • The company reported fourth-quarter 2025 financial results after the bell rang this afternoon.

  • Management forecasts year-over-year growth in 2026.

After rising 0.80% during today's regular market hours, Palantir (NASDAQ: PLTR) shares are soaring in after-hours trading. In addition to the tech company releasing its fourth-quarter 2025 financial results, management's encouraging 2026 guidance is providing investors with ample reasons to click the buy button on the data and software specialist's stock.

As of 5:35 p.m., Palantir stock is up 5.1% from its closing price of $147.76 during today's regular market session.

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Image source: Getty Images.

Management foresees growth on multiple metrics

Beating analysts' top-line estimates that it would post fourth-quarter 2025 revenue of $1.34 billion, Palantir posted sales of $1.41 billion. Similarly, the company exceeded profitability expectations, reporting adjusted earnings per share (EPS) of $0.25 -- better than the $0.23 analysts had anticipated.

In addition to Palantir's recent performance, management's insight into what lies ahead for the company is also stoking investors' excitement. Management projects 2026 revenue of $7.18 billion to $7.2 billion, representing year-over-year growth of more than 60%.

Perhaps of greater note to investors, management projects 2026 adjusted free cash flow of $3.925 billion to $4.125 billion. Should it achieve the midpoint of this guidance, it will represent a year-over-year increase of 77%.

Is it too late to pick up Palantir stock?

Palantir stock predictions vary tremendously. While some see Palantir stock extending its 135% gain from 2025 into 2026, others surmise shares are poised to plummet. What's clear, though, is that Palantir stock is trading at a premium right now -- currently priced at 199.7 times operating cash flow, notable steeper than their five-year average cash flow multiple of 69.2. The important thing for potential investors, without a doubt, is to conduct their due diligence and thoroughly evaluate the company before deciding to initiate a position.

Should you buy stock in Palantir Technologies right now?

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.

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