Palantir Technologies Inc. (PLTR) released its fourth-quarter earnings Monday after the bell, and the AI software company didn't just beat expectations—it obliterated them.

The Numbers Tell a Growth Story

Palantir reported fourth-quarter revenue of $1.41 billion, sailing past analyst estimates of $1.33 billion. Adjusted earnings came in at 25 cents per share, topping the 23-cent consensus.

But here's where things get interesting. Total revenue jumped 70% year-over-year, driven by explosive U.S. growth of 93% to $1.08 billion. U.S. Commercial revenue skyrocketed 137% year-over-year to $507 million, while U.S. Government revenue climbed 66% to $570 million. The company's Rule of 40 score—a key metric combining growth rate and profit margins—now sits at a stunning 127%.

On the deal front, Palantir closed 180 contracts worth over $1 million during the quarter, including 84 deals worth at least $5 million and 61 worth at least $10 million. Customer count grew 34% year-over-year and 5% quarter-over-quarter.

The company generated $777 million in cash from operations and $791 million in adjusted free cash flow, ending the period with approximately $7.2 billion in cash, cash equivalents, and short-term U.S. treasury securities.

"We are an n of 1, and these numbers prove it," said Alex Karp, co-founder and CEO of Palantir.

"Palantir is alone in choosing to exclusively focus on scaling the operational leverage made possible by the rapid advancements of AI models, a trend that we first called 'commodity cognition' well before others started repeating it."

Guidance That Turns Heads

If the fourth-quarter results were impressive, the guidance was downright audacious. Palantir expects first-quarter revenue between $1.532 billion and $1.536 billion, compared to analyst estimates of $1.32 billion. That's roughly 16% above expectations.

For full-year 2026, the company guided for revenue of $7.18 billion to $7.20 billion versus the Street's $6.21 billion estimate. The company also projected U.S. Commercial revenue growth of at least 115% and adjusted free cash flow of approximately $3.93 billion to $4.13 billion.

"We are at the outset, the very beginning, of a generational project," Karp wrote in a letter to shareholders.

The management team discussed the results in detail during an earnings call with investors and analysts at 5 p.m. ET.

Market Reaction

Palantir shares jumped 7.41% in after-hours trading Monday, reaching $158.62 at the time of publication.