Palantir surges 10% after beating earnings estimates. Here's what's happening

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Palantir

surged 10% in premarket trading on Tuesday after beating Wall Street’s fourth quarter estimates amid rising spending on AI 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 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 that the earnings were “the best results that I’m aware of in tech in the last decade.”