We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Palantir Surges on Earnings Strength: Time to Buy PLTR-Heavy ETFs?
Read MoreHide Full Article
Key Takeaways
Palantir beat Q4 earnings and revenue estimates as AI demand surged.
Strong FY26 and Q1 guidance highlights sustained AI momentum. However, valuation risks remain.
Palantir's earnings beat and sturdy outlook should benefit PLTR-linked ETFs such as PLTW and IGV.
Palantir Technologies (PLTR - Free Report) delivered a strong fourth-quarter performance, topping Wall Street estimates as demand for its artificial intelligence (AI) software rose across both government and commercial customers, as quoted on CNBC. The upbeat results sent shares up about 12% in after-hours trading on Feb. 2, 2026.
Q4 Results Crush Expectations
The AI-driven data analytics firm exceeded consensus forecasts on both the top and bottom lines. Quarterly earnings of $0.25 per share beat the Zacks Consensus Estimate of $0.23 per share, compared with earnings of $0.14 per share a year ago. Revenues of $1.41 billion surpassed the Zacks Consensus Estimate of $1.35 billion, as well as year-ago revenues of $827.5 million.
U.S. Demand Drives Growth
Palantir’s results were helped by its U.S. operations. Government revenue rose to $570 million, while U.S. commercial revenue reached $507 million, both comfortably beating FactSet estimates, as quoted in the above-mentioned CNBC article.
Deepening ties with the U.S. government, a segment that grew 66% year over year, have been a key catalyst. Demand has been especially strong from the Department of Defense, CNBC noted.
On the commercial side, U.S. revenues more than doubled from a year ago, while remaining U.S. commercial deal value surged 145% year over year to $4.38 billion. During the quarter, Palantir also announced a partnership with AI chip leader NVIDIA.
Upbeat Outlook
Palantir issued guidance that blew past analyst expectations. The company forecasts $1.532–$1.536 billion in first-quarter revenue, well above the Zacks Consensus Estimate of $1.31 billion. For fiscal 2026, Palantir guided to $7.182–$7.198 billion in revenue, versus the Zacks Consensus Estimate of $6.23 billion, indicating strong AI-driven demand.
Valuation Concerns Linger
Even with the earnings beat, rich valuation remains a cause for concern. Palantir stock has traded with a price-to-earnings (P/E) ratio of 229.05X on a trailing twelve-month basis versus a 25.98X P/E for the Internet – Software industry.
What Lies Ahead for ETFs?
As investors rotate away from richly valued AI stocks amid apprehension over higher rates in the United States, Palantir’s ability to translate AI euphoria into sturdy profits indicates the solid fundamentals still awaiting in the AI space. William Blair recently upgraded Palantir and expects shares to rebound to $200, as quoted on CNBC.
Investors wary about Palantir’s rich valuation can play Palantir-based exchange-traded funds (ETFs) like Roundhill PLTR WeeklyPay ETF (PLTW - Free Report) (up 14.6% after hours on Feb. 2), iShares U.S. Tech Independence Focused ETF (IETC - Free Report) (up 0.3% after hours on Feb. 2), iShares Expanded Tech-Software Sector ETF (IGV - Free Report) (up 1.5% after hours on Feb. 2), and Global X Defense Tech ETF (SHLD - Free Report) (up 1.3% after hours on Feb. 2). Note that the basket approach minimizes the company-specific concentration risks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Palantir Surges on Earnings Strength: Time to Buy PLTR-Heavy ETFs?
Key Takeaways
Palantir Technologies (PLTR - Free Report) delivered a strong fourth-quarter performance, topping Wall Street estimates as demand for its artificial intelligence (AI) software rose across both government and commercial customers, as quoted on CNBC. The upbeat results sent shares up about 12% in after-hours trading on Feb. 2, 2026.
Q4 Results Crush Expectations
The AI-driven data analytics firm exceeded consensus forecasts on both the top and bottom lines. Quarterly earnings of $0.25 per share beat the Zacks Consensus Estimate of $0.23 per share, compared with earnings of $0.14 per share a year ago. Revenues of $1.41 billion surpassed the Zacks Consensus Estimate of $1.35 billion, as well as year-ago revenues of $827.5 million.
U.S. Demand Drives Growth
Palantir’s results were helped by its U.S. operations. Government revenue rose to $570 million, while U.S. commercial revenue reached $507 million, both comfortably beating FactSet estimates, as quoted in the above-mentioned CNBC article.
Deepening ties with the U.S. government, a segment that grew 66% year over year, have been a key catalyst. Demand has been especially strong from the Department of Defense, CNBC noted.
On the commercial side, U.S. revenues more than doubled from a year ago, while remaining U.S. commercial deal value surged 145% year over year to $4.38 billion. During the quarter, Palantir also announced a partnership with AI chip leader NVIDIA.
Upbeat Outlook
Palantir issued guidance that blew past analyst expectations. The company forecasts $1.532–$1.536 billion in first-quarter revenue, well above the Zacks Consensus Estimate of $1.31 billion. For fiscal 2026, Palantir guided to $7.182–$7.198 billion in revenue, versus the Zacks Consensus Estimate of $6.23 billion, indicating strong AI-driven demand.
Valuation Concerns Linger
Even with the earnings beat, rich valuation remains a cause for concern. Palantir stock has traded with a price-to-earnings (P/E) ratio of 229.05X on a trailing twelve-month basis versus a 25.98X P/E for the Internet – Software industry.
What Lies Ahead for ETFs?
As investors rotate away from richly valued AI stocks amid apprehension over higher rates in the United States, Palantir’s ability to translate AI euphoria into sturdy profits indicates the solid fundamentals still awaiting in the AI space. William Blair recently upgraded Palantir and expects shares to rebound to $200, as quoted on CNBC.
Investors wary about Palantir’s rich valuation can play Palantir-based exchange-traded funds (ETFs) like Roundhill PLTR WeeklyPay ETF (PLTW - Free Report) (up 14.6% after hours on Feb. 2), iShares U.S. Tech Independence Focused ETF (IETC - Free Report) (up 0.3% after hours on Feb. 2), iShares Expanded Tech-Software Sector ETF (IGV - Free Report) (up 1.5% after hours on Feb. 2), and Global X Defense Tech ETF (SHLD - Free Report) (up 1.3% after hours on Feb. 2). Note that the basket approach minimizes the company-specific concentration risks.