Palantir It rose 7% on Tuesday, beating Wall Street’s fourth-quarter expectations as governments and companies ramp up spending on artificial intelligence tools.
LSEG’s stock price soared after it reported sales of $1.41 billion, beating expectations of $1.33 billion. The company’s adjusted earnings per share came to 25 cents, beating LSEG’s estimate of 23 cents per share.
The earnings were announced after 2025 ended on a down note. November was Palantir’s worst month in two years, as concerns over an AI valuation bubble led to a broader decline in software stocks. The stock ended up rising 135% in 2025, but was down 17% year-to-date as of Monday’s close.
CEO Alex Karp told CNBC’s Morgan Brennan on Monday that the revenue was “the best performance I’ve seen in the tech industry in the last 10 years.”
Palantir Stock Over the Past Year
Palantir creates software and data tools for businesses and government agencies such as the Department of Defense, Internal Revenue Service, and Department of Homeland Security. Karp said the adoption of the company’s tools by the U.S. government has led to a 66% year-over-year increase in sales.
Palantir signed a software contract worth up to $10 billion with the U.S. Army in July, and a $448 million contract with the U.S. Navy in December to accelerate shipbuilding production.
“Palantir’s valuation, while still frothy, appears reasonable compared to recent venture rounds for companies in the AI ecosystem,” William Blair analyst Louis DiPalma said in a note Monday ahead of the earnings release.
DiPalma said he expects Palantir’s operating margins to rise from 50% to 65% over the next five years as government and defense contracts increase.
The company has come under scrutiny in recent weeks for its cooperation with U.S. Immigration and Customs Enforcement after federal agents shot and killed two protesters in Minneapolis.
