Palantir Technologies (NASDAQ:PLTR) Shares Gap Up on Better-Than-Expected Earnings

Palantir Technologies Inc. (NASDAQ:PLTR)’s stock price gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $147.76, but opened at $165.05. Palantir Technologies shares last traded at $154.8390, with a volume of 21,639,867 shares traded.

The company reported $0.25 earnings per share for the quarter, topping analysts’ consensus estimates of $0.23 by $0.02. Palantir Technologies had a return on equity of 15.48% and a net margin of 28.11%.The business had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.34 billion. During the same period in the prior year, the business earned $0.14 EPS. The firm’s revenue for the quarter was up 70.0% on a year-over-year basis.

More Palantir Technologies News

Here are the key news stories impacting Palantir Technologies this week:

• Positive Sentiment: Q4 beat and eye‑catching guidance — Palantir reported $1.41B revenue (+70% YoY) and beat EPS expectations; management guided FY‑2026 revenue meaningfully higher (about +61% / ~$7.2B), signaling accelerating top‑line momentum. Read More.
• Positive Sentiment: AI + U.S. commercial demand is driving durable revenue jumps — U.S. commercial revenue rose ~137% and management said AI adoption is boosting existing-client spend, a theme investors view as sustainable growth. Read More.
• Positive Sentiment: Wall Street revising estimates — Several firms upgraded PLTR (William Blair, Robert W. Baird, Northland) and Citi set a street‑high $235 target, adding fuel to buyer interest. Read More.
• Positive Sentiment: Profitability & cash flow improvement — The quarter showed wider margins, strong operating profit and sizable operating cash generation, which supports the bullish narrative beyond pure revenue growth. Read More.
• Neutral Sentiment: Macro / market context — A partial U.S. government shutdown delayed some economic releases, meaning earnings are the market focus this week; positive PLTR results are helping lift futures and tech ETFs. Read More.
• Neutral Sentiment: Public comments and reputation risks — CEO remarks defending government work continue to draw attention; that shapes long‑term political/regulatory debate but was not the primary driver of today’s move. Read More.
• Negative Sentiment: Heavy insider selling remains a red flag — Third‑party trackers show numerous insider sales and no recent insider buys, which some investors see as a governance/lockup signal to monitor. Read More.
• Negative Sentiment: Valuation and recent volatility — PLTR still trades at a very high P/E and has seen sharp pullbacks (notably an ~18% January drop). Elevated multiples increase the risk of profit‑taking even after a strong quarter. Read More.

Analyst Ratings Changes

A number of analysts have commented on the stock. Zacks Research lowered shares of Palantir Technologies from a “strong-buy” rating to a “hold” rating in a research note on Friday. Raymond James Financial restated a “market perform” rating on shares of Palantir Technologies in a report on Tuesday, November 4th. Weiss Ratings cut shares of Palantir Technologies from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, January 15th. Royal Bank Of Canada boosted their price objective on Palantir Technologies from $45.00 to $50.00 and gave the stock an “underperform” rating in a report on Tuesday, November 4th. Finally, Morgan Stanley raised their target price on Palantir Technologies from $155.00 to $205.00 and gave the company an “equal weight” rating in a report on Tuesday, November 4th. Ten equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $190.45.

Insider Transactions at Palantir Technologies

In other Palantir Technologies news, insider Shyam Sankar sold 19,004 shares of the stock in a transaction dated Friday, November 21st. The shares were sold at an average price of $156.25, for a total transaction of $2,969,375.00. Following the completion of the transaction, the insider owned 642,786 shares in the company, valued at $100,435,312.50. This trade represents a 2.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider David A. Glazer sold 9,000 shares of the business’s stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $185.91, for a total transaction of $1,673,190.00. Following the completion of the sale, the insider directly owned 413,639 shares in the company, valued at approximately $76,899,626.49. This trade represents a 2.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 1,023,444 shares of company stock valued at $167,394,629. 9.23% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Palantir Technologies

A number of large investors have recently made changes to their positions in the stock. Vanguard Group Inc. increased its position in shares of Palantir Technologies by 0.7% during the fourth quarter. Vanguard Group Inc. now owns 215,444,098 shares of the company’s stock valued at $38,295,188,000 after buying an additional 1,557,828 shares during the period. State Street Corp increased its holdings in Palantir Technologies by 7.2% during the 3rd quarter. State Street Corp now owns 101,258,899 shares of the company’s stock worth $18,471,648,000 after acquiring an additional 6,777,771 shares during the period. Norges Bank purchased a new stake in Palantir Technologies in the 2nd quarter worth approximately $3,307,457,000. Invesco Ltd. boosted its holdings in Palantir Technologies by 5.9% in the 3rd quarter. Invesco Ltd. now owns 21,798,785 shares of the company’s stock valued at $3,976,534,000 after purchasing an additional 1,213,529 shares during the period. Finally, Northern Trust Corp grew its position in shares of Palantir Technologies by 3.8% during the 3rd quarter. Northern Trust Corp now owns 21,088,462 shares of the company’s stock valued at $3,846,957,000 after purchasing an additional 769,238 shares in the last quarter. 45.65% of the stock is owned by institutional investors.

Palantir Technologies Stock Performance

The stock has a market capitalization of $374.65 billion, a PE ratio of 372.66, a price-to-earnings-growth ratio of 3.69 and a beta of 1.54. The business’s 50-day moving average price is $175.84 and its 200 day moving average price is $173.70.

Palantir Technologies Company Profile

Palantir Technologies is a software company that develops data integration, analytics and operational decision-making platforms for government and commercial customers. Founded in 2003 by a team that included Alex Karp and Peter Thiel, Palantir has grown into a provider of enterprise-scale software designed to help organizations integrate disparate data sources, build analytic models and drive operational workflows. The company went public in 2020 and continues to position its products around large, complex data projects where security, provenance and real-time collaboration are important.

Palantir’s product portfolio centers on a small number of core platforms.