New York, February 4, 2026, 07:33 (EST) — Premarket
- PLTR shares slipped in premarket following a strong post-earnings surge the day before
- Palantir grabs attention with robust 2026 outlook while software stocks stumble amid AI disruption concerns
- Traders will monitor contract signings alongside progress toward first-quarter targets
Shares of Palantir Technologies Inc slipped roughly 0.8% in early trading Wednesday, falling to $156.60. The stock had jumped 6.9% in the previous session, closing at $157.88. Investing.com
Software bulls are facing tough timing. Cloud and software stocks have taken a hit, making investors jittery about upcoming guidance cuts or signs of a slowdown. The software and services index has dropped over 12% in the past five sessions, and a number of major players slipped further before the opening bell. Reuters
Palantir’s earnings dropped into a turbulent market but the numbers were solid enough to lure buyers back—at least briefly. Morningstar analysts highlighted “political tailwinds for reindustrialization” and a boost to U.S. supply chains as potential growth drivers. Still, they warned the stock has little cushion if growth slows. Palantir has fallen nearly 17% this year and is trading at roughly 131 times forward earnings, a ratio comparing current price to expected profits over the next 12 months. Reuters
Palantir reported a 70% jump in fourth-quarter revenue to $1.407 billion in a filing with the U.S. Securities and Exchange Commission. U.S. government revenue climbed 66% to $570 million, while U.S. commercial revenue soared 137% to $507 million. The company recorded $4.262 billion in total contract value — representing the face value of signed deals, not recognized revenue. It projected 2026 revenue between $7.182 billion and $7.198 billion, with adjusted free cash flow expected to range from $3.925 billion to $4.125 billion, reflecting cash generated post-capital spending. CEO Alex Karp described Palantir as “an n of 1,” and the company reported a “Rule of 40” score of 127%, combining revenue growth and adjusted operating margin. SEC
Karp pushed back on concerns about Palantir’s surveillance tech after earnings, stressing the software includes safeguards against government overreach amid rising scrutiny of contractors linked to U.S. immigration enforcement. “Valuation question marks won’t disappear,” noted Zavier Wong, an analyst at eToro, warning that Palantir “remains priced for perfection.” Reuters
Analysts are cautiously jumping on the bandwagon. William Blair upgraded Palantir to “outperform” ahead of the earnings release, dubbing the company a frontrunner in the “AI supply chain,” according to Investopedia. CEO Alex Karp hailed the quarter as a “remarkable achievement” with a “massive acceleration in growth.” Citi’s Tyler Radke echoed the optimism, saying demand fits Palantir’s strengths perfectly and raising his price target to $235 from $210.
Palantir sells software that helps integrate and analyze massive datasets, built on a strong foundation in U.S. government contracts. It’s now ramping up commercial efforts through its Artificial Intelligence Platform, or AIP. Bulls are betting that steady defense demand combined with expanding corporate use will sustain growth, even if the wider software market cools off.
The downside is clear enough. Large contracts come with volatility, federal budgets fluctuate, and reputational risks tied to sensitive government projects can sour investor mood—especially when the stock trades as if perfect execution is a given.
Focus now shifts to hitting the March-quarter revenue target of $1.532 billion to $1.536 billion and whether bookings remain strong. Wall Street Horizon shows Palantir’s next earnings report scheduled for May 4 after the close, though that date is still unconfirmed. wallstreethorizon.com
