Palantir Technologies Inc. (NASDAQ:PLTR) shares are trading higher Tuesday after the company reported better-than-expected fourth-quarter fiscal earnings and issued first-quarter sales guidance above estimates. Also, the company issued fiscal-year 2026 sales guidance above estimates.
Earnings And Revenue Beat Estimates, U.S. Commercial And Government Revenue Grow
Palantir reported adjusted earnings per share of 25 cents, beating the consensus estimate of 23 cents. In addition, the company reported revenue of $1.40 billion, beating the consensus estimate of $1.32 billion.
The company reported growth across its U.S. operations in the fourth quarter. U.S. revenue increased 93% year-over-year, driven by a 137% increase in U.S. commercial revenue. U.S. government revenue rose 66% year-over-year.
Palantir reported increased customer activity during the quarter, closing 180 deals of at least $1 million, including 84 deals of at least $5 million and 61 deals of at least $10 million. Total contract value increased 138% year-over-year to $4.262 billion. U.S. commercial total contract value rose 67% year-over-year, while U.S. commercial remaining deal value increased 145% year-over-year.
The company reported GAAP operating margins of 41% and adjusted operating margins of 57% for the quarter. Palantir also generated operating cash flow and adjusted free cash flow margins above 50% and reported a Rule of 40 score of 127%.
For fiscal-year 2025, Palantir reported growth across its U.S. business. U.S. revenue grew 75% year- over-year, with U.S. commercial revenue up 109% and U.S. government revenue up 55%. The company reported GAAP operating margins above 30% and adjusted operating margins of 50% for the year.
Palantir expects first-quarter revenue of $1.532 billion to $1.536 billion, versus the consensus estimate of $1.31 billion. Furthermore, the company anticipates full-year revenue of $7.18 billion to $7.19 billion, versus the consensus estimate of $6.21 billion.
Technical Analysis of Palantir
Palantir is currently trading 2.9% below its 20-day simple moving average (SMA) and 7.6% below its 100-day SMA, indicating some short-term weakness despite its longer-term uptrend. Over the past 12 months, shares have increased by 76.45%, and they are positioned closer to their 52-week highs than lows, suggesting a strong performance overall.
The RSI is currently at 26.65, indicating that the stock is in oversold territory, which could point to a potential rebound. Meanwhile, the MACD is below its signal line, suggesting bearish pressure on the stock.
The combination of oversold RSI and bearish MACD indicates mixed momentum, suggesting that while there may be short-term selling pressure, the stock could be due for a bounce back.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Palantir Technologies, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 1.4) — Trading at a steep premium relative to peers.
- Growth: Strong (Score: 92.15) — Indicates robust growth potential.
- Momentum: Strong (Score: 83.72) — Stock is outperforming the broader market.
The Verdict: Palantir Technologies’s Benzinga Edge signal reveals a classic ‘High-Flyer’ setup. While the Growth (92.15) and Momentum (83.72) scores confirm the strong trend, the extremely low Value (1.4) score warns that the stock is priced for perfection—investors should ride the trend but use tight stop-losses.
Palantir Shares Surge Higher
PLTR Price Action: At the time of writing, Palantir shares are trading 11.50% higher at $164.75, according to data from Benzinga Pro.
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