Investors are getting plenty of bang for their buck from AI hot stock Palantir Technologies (PLTR). The stock has surged 900% in two years, 77% in the past 12 months, as revenues and earnings spiked, and there’s more to come, judging by the market mood music. Notably, Stock jumps 11% in pre-market US trading, which has drawn further attention to Palantir’s performance.
The stock jumped 11% in pre-market US trading on Tuesday after the data analytics specialist delivered a strong Q4 earnings beat and promised more of the same for 2026. It crucially underscores accelerating demand for its AI platforms and explains why Stock jumps 11% in pre-market US trading was headline news.
Trusted intelligence
Palantir, which supplies data integration and decision-support platforms to government agencies and commercial enterprises, reported adjusted EPS of $0.25 for the quarter, beating analysts’ expectations of $0.23. Revenue surged 70% year-on-year to a record $1.41 billion, topping consensus forecasts of $1.32 billion, as customers increased spending on AI-enhanced tools across both public and private sectors.
| Palantir Technologies (PLTR) | Price: $163.24 (+11%) | Market cap: $389bn |
Importantly, Palantir financials and forecasts echo AI-industry wide talk of capacity pinch points firmly on supply, not demand.
For the current quarter, to end March, the company projected revenue of $1.532 billion to $1.536 billion, well ahead of market expectations of around $1.33 billion. Looking further ahead, Palantir guided full-year revenue to $7.182 billion to $7.198 billion, comfortably above the $6.28 billion consensus estimate.
Operating leverage
Chief executive Alex Karp said the company is benefiting from operating leverage as its AI capabilities mature and scale across its customer base, enabling faster deployments and higher-margin contracts. Unsurprisingly, Stock jumps 11% in pre-market US trading is now a frequent topic among investors.
Deal activity also remained robust. Palantir said it closed 180 contracts worth at least $1 million during the quarter, including 61 deals valued at $10 million or more, signalling strong enterprise demand for its software.
Analysts at Loop Capital said that while software investors remain selective, Palantir’s combination of accelerating revenue growth and improving margins could drive renewed interest as market sentiment stabilises. They added that continued execution on AI-driven products will be key to sustaining the company’s premium growth profile into 2026.
The stock maybe off around 10% year-to-date but you can’t argue that Palantir is one of AI’s star stocks. The question, however, is how much growth is already baked into the stock. A lot, in short.
Significantly, Stock jumps 11% in pre-market US trading points to potential further upside as Palantir’s AI expansion continues to drive positive sentiment. Analysts already anticipate 40%-45% CAGR (compound annual revenue growth) out to 2028, with a similar trajectory for EPS. For this, investors are asked to pay a triple-digit 2026 PE, that’s still 85 for 2028).
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