Alex Karp, CEO of Palantir Applied sciences, attended the 56th World Financial Discussion board (WEF) Annual Assembly in Davos, Switzerland on January 20, 2026.
Dennis Bariboos | Reuters
Palantir It beat Wall Avenue’s fourth-quarter forecasts as extra corporations and the U.S. authorities compete to purchase synthetic intelligence instruments.
After the bell, the inventory rose 5%.
This is how the corporate carried out towards LSEG’s estimates:
Earnings per share: 25 cents adjusted, 23 cents anticipated; Income: $1.41 billion, $1.33 billion anticipated.
Income elevated 70% from $827.5 million in the identical interval final 12 months. Within the fiscal 12 months, the Denver-based firm’s gross sales totaled $4.48 billion.
U.S. authorities and industrial sector revenues elevated to $570 million and $507 million, respectively. These outcomes steadily beat the expectations of analysts surveyed by FactSet.
In an interview with CNBC’s Morgan Brennan, CEO Alex Karp referred to as the outcomes “completely one of the best efficiency within the know-how trade within the final 10 years that I am conscious of.”
“If you happen to’re not spending cash on this, you are not spending cash on one thing to keep up momentum,” he added.
Wanting forward, the AI-powered software program supplier mentioned it expects first-quarter income to be between $1.532 billion and $1.536 billion, properly above the $1.32 billion predicted by FactSet. The corporate forecast fiscal 2026 gross sales within the vary of $7.182 billion to $7.198 billion, beating FactSet’s forecast of $6.22 billion.
Palantir, which develops software program and knowledge instruments that it sells to companies and authorities companies such because the Division of Protection, Inner Income Service and Homeland Safety, has thrived on surging demand for AI techniques and widespread personal investor enthusiasm.
Karp famous continued adoption of the corporate’s instruments by the U.S. authorities, which noticed 66% progress within the house.
“America is changing into extra deadly, extra assured, extra disconnected from our adversaries and, frankly, from our allies,” he mentioned.
Karp mentioned demand for its merchandise is so robust that Palantir is refraining from promoting new merchandise to allies as a result of it’s “deeply dedicated to america.”
Palantir will maintain an earnings convention name with analysts at 5 p.m. ET.
Karp mentioned a lot of these requests come from the Division of Protection. This summer time, the corporate signed a contract price as much as $10 billion with the U.S. Military to help its software program and knowledge wants. Palantir additionally signed a $448 million contract with the U.S. Navy in December to speed up shipbuilding manufacturing.
Palantir has confronted backlash in latest weeks for its work with the Division of Homeland Safety, notably with U.S. Immigration and Customs Enforcement, after federal brokers shot and killed two protesters in Minneapolis.
“If you happen to’re essential of ICE, you have to be protesting for extra Palantir,” he informed CNBC. “In actual fact, at its core, our merchandise require individuals to adjust to Fourth Modification knowledge protections.”
Palantir’s U.S. industrial income greater than doubled from final 12 months, with remaining U.S. industrial contracts rising 145% year-over-year to $4.38 billion. Throughout this era, Palantir introduced partnerships with main AI chip producers. Nvidia.
Internet earnings totaled greater than $608 million, or 24 cents per share. A 12 months in the past, the corporate reported web earnings of $79 million, or 3 cents per share.
Traders are setting excessive hurdles for Palantir because it prepares to report earnings. The inventory, a favourite amongst retail traders, has gained 81% within the final 12 months. Nonetheless, some Wall Avenue analysts have expressed considerations concerning the excessive a number of, with the inventory anticipated to fall by about 15% in 2026.
In November, brief vendor Michael Varley disclosed his wager on software program analytics agency and chipmaker Nvidia. On the time, Karp informed CNBC the transfer was “insane” and accused it of “market manipulation.”
The inventory then completed its worst month in two years as traders moved away from AI shares because of valuation considerations and considerations about bubbles.
In a letter to shareholders, Karp mentioned Palantir’s income are “pure and contrived” regardless of rising strain for AI corporations to give attention to fundamentals.
The corporate’s industrial division advantages from the necessity for software program that gives construction to giant language fashions, he added.
“The worth created by these technological techniques, which aren’t centered assiduously on the mice the cat truly catches, will ultimately fade into the grey and be forgotten,” Karp wrote.
