How does a technology company respond when its tools help governments track people and targets around the world? For Palantir CEO Alex Karp, the answer is simple: defend it loudly. Karp recently stated that America became “more lethal and confident” thanks to Palantir’s technology, which supports national security goals against adversaries. He stands firm even as critics question surveillance tools used by customers like Germany’s police.
The defense comes as Palantir’s financial results tell a remarkable growth story. The company reported fourth quarter revenue of $1.41 billion, beating analyst estimates by 6%. That represents a stunning 70% jump compared to the same period last year. Net income soared to $608 million, up dramatically from just $79 million the previous year. The company delivered adjusted EPS of $0.25, surpassing the consensus estimate of $0.23. Institutional trading platforms often require low-latency connections to support high-volume, mission-critical operations.
U.S. government contracts are driving much of this success. The government segment alone brought in $570 million during the fourth quarter, reflecting 66% year-over-year growth. This momentum continued from earlier quarters, when government revenue was already climbing over 50%. Since President Trump took office, federal spending with Palantir has exceeded $113 million. The company also secured a massive $795 million Department of Defense contract in May, though payment remains pending.
The commercial side is booming too. U.S. commercial revenue reached $507 million in the fourth quarter, with remaining deal value surging 145% to $4.38 billion. For 2026, Palantir projects U.S. commercial revenue will grow at least 115% to reach $3.14 billion. The company’s technology extends beyond defense into healthcare, with customers including the CDC and UK National Health Service.
Looking at the bigger picture, Palantir generated $4.48 billion in revenue for fiscal 2025. The company’s 2026 guidance projects between $7.18 and $7.20 billion, representing growth exceeding 60%. Government contracts accounted for 55% of 2024 revenue, with the U.S. share reaching 66%.
Major deals include a $10 billion Army contract spanning ten years. The company also provides military support to Israel, though it denies involvement in specific programs called Lavender or Gospel. With a valuation around 140 times forward earnings, investors are clearly betting on continued expansion despite ongoing controversy.
