Palantir Sees 61% 2026 Revenue Growth But RBC Holds Underperform
Palantir reported Q4 revenue up 82% commercial and 60% government to beat consensus by 5%, with adj. EPS $0.25 and operating margin 57% topping forecasts. It raised 2026 guidance to $7.18–$7.20B (61% growth) and forecasted 72% first-quarter margins, yet RBC Capital maintained an Underperform rating with a $50 price target.
1. Strong Q4 Beat
Palantir posted a 5% revenue beat in Q4, driven by 82% commercial and 60% government segment growth, while adjusted operating margin reached 57% and EPS hit $0.25, both above consensus forecasts.
2. Aggressive 2026 and Q1 Guidance
Management raised 2026 revenue guidance to $7.182–$7.198 billion (61% growth versus 41% consensus) and set Q1 revenue at $1.532–$1.536 billion (~74% YoY), forecasting a 72% operating margin midpoint and $3.925–$4.125 billion in free cash flow.
3. RBC Maintains Bearish View
RBC Capital upheld its Underperform rating with a $50 price target, citing valuation risks despite Palantir’s robust financial performance and elevated growth outlook compared to street estimates.