Palantir (PLTR) reported fourth-quarter 2025 results that surpassed analyst estimates. Revenue increased by 70% to $1.41 billion, with adjusted EPS at $0.25. Full-year revenue was $4.48 billion, with a 61% year-over-year growth expected for 2026. Despite the positive results, PLTR stock declined by 3% over the past five days due to concerns over valuation. The company saw significant growth in U.S. commercial revenue and a rise in customer count to 954, with $4.26 billion in contracts closed in Q4. However, the market remains hesitant due to the stock’s premium valuation.

Despite strong financials, Palantir’s valuation remains high, with PLTR stock trading at 123 times forward earnings and 90 times next year’s earnings. Investors are becoming more selective, and Palantir’s valuation is above historical norms and peers. Analyst sentiment is mixed, and investors are advised to watch for further decline in software stocks before considering PLTR as a bargain. Comparisons to companies like Microsoft show that PLTR stock may need to drop further to attract buyers.

Read more at Barchart: As Palantir Bets on 61% Revenue Growth in 2026, Should You Buy Palantir Stock?