Palantir Technologies (NASDAQ:PLTR), which develops data integration and analytics platforms for government and commercial clients, closed at $157.88, up 6.85%. The stock moved higher after its latest earnings release and bullish analyst reactions highlighted record Q4 growth and strong AI-driven demand. Investors are contemplating whether fiscal 2026 guidance translates into sustained revenue expansion.
Trading volume reached 111.3 million shares, coming in about 139% above its three-month average of 46.5 million shares. Palantir Technologies IPO'd in 2020 and has grown 1,562% since going public.
How the markets moved today
S&P 500 (SNPINDEX:^GSPC) fell 0.85% to 6,917, while the Nasdaq Composite (NASDAQINDEX:^IXIC) declined 1.43% to 23,255. Among software - infrastructure peers, Microsoft (NASDAQ:MSFT) closed at $411.21 (-2.87%) and Oracle (NYSE:ORCL) finished at $154.6 (-3.41%) as investors weighed AI infrastructure spending plans.
What this means for investors
Palantir’s revenue soared about 70% year over year, with strength in the U.S. commercial business especially strong. Revenue in that segment rocketed 137% higher year over year, making up about half of total U.S. sales. That was especially impressive given that many investors consider Palantir more reliant on government contracts.
Analysts reacted positively, upgrading the stock and setting price targets as high as $235 per share. Accelerating AI-driven growth has investors believing that Palantir’s lofty stock valuation is justified. If its rate of growth is sustainable over the next several quarterly periods, that will look like the right call.
Should you buy stock in Palantir Technologies right now?
Before you buy stock in Palantir Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $446,319!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,137,827!*
Now, it’s worth noting Stock Advisor’s total average return is 932% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 3, 2026.
Howard Smith has positions in Microsoft. The Motley Fool has positions in and recommends Microsoft, Oracle, and Palantir Technologies. The Motley Fool has a disclosure policy.
