CEO Alex Karp Just Delivered Fantastic News for Palantir Stock Investors

Core Insights - Palantir Technologies has achieved its 10th consecutive quarter of accelerating revenue growth, indicating strong performance amidst high market expectations [1][9]. Financial Performance - Palantir reported fourth-quarter revenue of $1.40 billion, representing a 70% year-over-year increase and a 19% quarter-over-quarter increase, surpassing analysts' expectations of $1.34 billion [3]. - Adjusted earnings per share (EPS) reached $0.25, a 79% increase, exceeding the consensus estimate of $0.23 [3]. - The U.S. commercial segment, which includes the flagship Artificial Intelligence Platform (AIP), saw revenue soar 137% to $507 million, accounting for 36% of total revenue [4]. Future Outlook - The total contract value (TCV) for the quarter was a record $4.26 billion, up 138% year-over-year, with the U.S. commercial segment contributing a TCV of $1.34 billion, up 67% [4]. - Remaining deal value (RDV) in the U.S. commercial segment surged 145% year-over-year to $4.38 billion, indicating strong future growth potential [5]. - Management forecasts at least 61% revenue growth in 2026, following a full-year growth of 56% in 2025 [8]. Financial Health Metrics - The company's Rule of 40 score reached 127%, indicating strong financial health, with an operating cash flow of $777 million and a margin of 55% [7]. - Adjusted free cash flow was reported at $791 million, with a margin of 56% [7].