Palantir reported fourth-quarter revenue growth of 70% year-over-year, reaching $1.41 billion, driven by strength in both commercial and government contracts. The company generated $791 million in free cash flow, representing a 57% operating margin, and closed the quarter with $2.48 billion in remaining performance obligations, up 45% year-over-year. Management guided fiscal 2026 revenue to approximately $7.2 billion—an anticipated 61% increase—underscoring confidence in continued momentum across its AI software platforms.

During the earnings call, CEO Alex Karp lambasted what he termed “circular AI investments,” where tech giants fund startups that then deploy that capital back into the investor’s own cloud or hardware services. He emphasized that Palantir’s growth is entirely organic, with no co-investing or intertwined economics. Karp highlighted that the company has maintained direct relationships with defense, intelligence and commercial clients, distinguishing Palantir’s model from peers that rely on subsidized ecosystems to inflate growth metrics.

Commercial revenue doubled year-over-year in the quarter, growing 137%, and is forecast to increase another 115% in the current calendar year. Net revenue retention stood at 139%, while backlog rose 143%, reflecting stronger multi-year commitments for Palantir’s AIP and Foundry platforms. The company added over 100 new commercial customers during the period, bringing total active commercial accounts to more than 350, as enterprises across finance, healthcare and manufacturing deploy custom AI solutions on Palantir’s software.