Palantir (PLTR) reported strong fourth-quarter earnings, leading to a surge of over 11.5% in pre-market trading. Revenue growth was highlighted, with a 70% increase YoY, driven by the U.S. segment which surpassed $1 billion in quarterly revenue for the first time. Profitability also improved significantly, with a 57% operating margin.

The demand for Palantir’s Artificial Intelligence Platform (AIP) continues to be a major growth driver, supporting revenue growth and expanding profit margins. The company’s U.S. commercial business saw impressive growth, with a 137% YoY increase in the fourth quarter. Bookings momentum remained strong, with the highest-ever quarterly total contract value bookings of $4.3 billion.

Palantir’s management is confident in the growth momentum, projecting U.S. commercial revenue to exceed $3.144 billion in 2026. International operations also provide upside potential, with major long-term renewals securing future revenue streams. The company delivered 56% revenue growth in 2025 and forecasts 61% YoY growth in 2026, supported by strong profitability and cash flow scaling.

Despite positive performance, Wall Street analysts maintain a “Hold” consensus rating on PLTR stock. If Palantir can sustain growth and improve profitability, investor confidence may strengthen, potentially leading to the stock hitting $255. Management’s guidance reflects optimism, with a focus on expanding the customer base and increasing contract values.

Read more at Yahoo Finance: After Strong Q4 Earnings, Is Palantir Stock Headed to $255 in 2026?