Palantir climbed 7% on Tuesday after beating Wall Street's fourth-quarter estimates amid rising spending on artificial intelligence tools from governments and businesses.
The shares popped after it reported $1.41 billion in revenue, ahead of LSEG estimates of $1.33 billion. The company posted adjusted earnings per share of 25 cents, beating the 23 cents a share expected by LSEG.
The earnings came after a muted end to 2025 — November was Palantir's worst month in two years amid a broader decline in software stocks over fears of an AI valuation bubble. The stock ultimately rose 135% in 2025 but, at Monday's close, was down 17% year to date.
CEO Alex Karp told CNBC's Morgan Brennan Monday that the earnings were "the best results that I'm aware of in tech in the last decade."