New York, Jan 28, 2026, 18:19 EST — After-hours
- Palantir shares dropped roughly 5% on Wednesday, closing near $157.35
- Investors are bracing for Palantir’s quarterly earnings, due Feb. 2 after markets close
- Rates remained steady, maintaining pressure on richly valued growth stocks
Shares of Palantir Technologies (PLTR.O) dropped 5.1% to $157.35 in after-hours trading Wednesday, following an intraday range of $156.59 to $166.03.
The pullback comes as Palantir’s earnings countdown ticks closer. The company plans to release its fourth-quarter and full-year 2025 results on Feb. 2 after U.S. markets close, with a webcast scheduled for 5 p.m. ET. (Business Wire)
Rate math continued to weigh on markets. On Wednesday, the Federal Reserve kept its target range for the federal funds rate steady at 3-1/2% to 3-3/4%, noting that inflation remains “still elevated.” (Federal Reserve)
U.S. stocks ended nearly flat following the announcement, with traders swiftly turning their focus to major tech earnings and capex strategies driving the wider “AI trade.” “No matter if you were bullish or bearish before the press conference, you pretty much ended up feeling the same,” said Michael James, equity sales trader at Rosenblatt Securities. (Reuters)
Palantir’s next trigger won’t hinge on interest rates but on whether its AI pitch continues turning into deals as eagerly as investors expect. CEO Alex Karp has emphasized “the transformational impact of using AIP to compound AI leverage” and pointed to the company’s “Rule of 40” metric — which combines revenue growth and profit margin to measure software health. The firm has previously forecasted fourth-quarter revenue between $1.327 billion and $1.331 billion. (IG)
Traders are eyeing potential shifts in 2026 guidance, with a focus on U.S. commercial growth and the extent to which that momentum relies on Palantir’s AI Platform, or AIP, which enables clients to operate AI models on their data.
Margins are key. Palantir has focused on profitability and cash flow to offset concerns about its valuation. Investors, however, tend to react negatively whenever spending appears to be rising faster than revenue.
There’s a clear “but.” When a stock’s already priced for rapid growth, missing on guidance can trigger a steep drop. Even a strong quarter might not protect shares if management signals caution on deal timing or spending plans.
Heading into Thursday’s open, investors are watching for any ripple effects from the initial batch of megacap tech earnings. Changes in AI spending strategies have the power to quickly sway sentiment throughout the sector.
Palantir’s earnings for Feb. 2 will drop after the close, followed by a 5 p.m. ET webcast. This report could shape the stock’s momentum heading into February.
