As Palantir Bets on 61% Revenue Growth in 2026, Should You Buy Palantir Stock?

Palantir (PLTR) recently posted fourth-quarter 2025 results that trounced analyst estimates. Revenue grew 70% to $1.41 billion, while adjusted EPS came in at $0.25 against expectations of $0.23. Full-year revenue came in at $4.48 billion, with management expecting 2026 revenue at $7.19 billion, up 61% year-over-year (YOY). That’s almost $1 billion more than what the consensus penciled in earlier.

As one would expect, PLTR stock surged on the report, but this didn’t last for long. Shares are down 3% over the past five days and the reaction tells you everything about where Palantir sits in the market’s imagination. The stock is loved for its fundamentals and feared for its valuation.

Should you chase the execution and buy the stock at a discount, or is PLTR going even lower? Let’s take a look at what has been happening.

U.S. commercial revenue exploded 137% YOY in Q4, reaching $507 million, while total U.S. revenue grew 93% YOY to $1.08 billion. For the full year, U.S. commercial revenue more than doubled, rising 109% to $1.47 billion. What makes these figures genuinely remarkable is the customer behavior underneath them. Palantir’s customer count climbed 34% YOY to 954.

Not only that, the company closed $4.26 billion in contracts during Q4 alone, up 138% YOY. Existing clients are quadrupling and quintupling their commitments. This proves that once Palantir gets its foot in the door, it can start taking over operations at both businesses and government institutions very rapidly. It’s a win-win for both Palantir and its clients, with one shipbuilder slashing their planning time from 160 hours to 10 minutes. A boost like that makes up for very sticky customer relationships and opens the door for further deals.

Moreover, adjusted free cash flow for Q4 hit $791 million at a 56% margin. For the full year, the metric reached $2.27 billion at a 51% margin. These figures are truly unbelievable, even for a software company.

Palantir’s valuation is mostly where things start going awry. The company has a spotless track record, but Wall Street is no longer willing to pay a massive premium for it. That may have a lot to do with the broader market entering a “risk-off” mode by dumping speculative assets and piling into safer ones.