Palantir Shares Pop as Strong Growth Continues. Is It Too Late to Buy the Stock?

Palantir Technologies (NASDAQ: PLTR) yet again demonstrated why it is one of the top artificial intelligence (AI) stocks when it reported its Q4 2025 results, climbing on the news. While the stock has traded down thus far in 2026, it is up more than 30% over the past year.

Let's take a closer look at the company's results to see if the stock's momentum can continue or whether it's too late to buy.

A blowout quarter

For the 10th straight quarter, Palantir's quarterly revenue growth accelerated, as the company continues to deliver some of the best growth in the AI space. During this period, its year-over-year growth went from 13% in 2023's Q2 to 70% last quarter. Its Q4 revenue of $1.41 billion also easily surpassed management's prior guidance for revenue of between $1.327 billion and $1.331 billion. Adjusted earnings per share, meanwhile, rose from $0.14 to $0.25.

Data source: Palantir.

U.S. commercial revenue once again led the way, as customers continue to rapidly adopt and expand their use of its Artificial Intelligence Platform (AIP). U.S. commercial revenue skyrocketed 137% to $507 million in the quarter, while U.S. commercial remaining deal value surged 145% to $4.38 billion. Meanwhile, it closed U.S. commercial deals worth $1.34 billion in total contract value in the quarter, a 67% year-over-year increase.

Net revenue retention -- which measures revenue growth from existing customers that have been with the company for more than a year -- was an astounding 139%, demonstrating how existing customers are quickly expanding with Palantir. Meanwhile, it also continues to add new customers, with its customer count growing by 34%.

On the government side of its business, revenue jumped 60% year over year to $730 million. U.S. government revenue climbed 66% to $570 million. International government revenue, meanwhile, increased by 43% to $160 million. With international commercial growth not a big focus, revenue increased 8% to $171 million.

Looking ahead, the company projected Q1 revenue of between $1.532 billion and $1.536 billion, representing 74% growth at the midpoint. For the full year, it is looking for revenue of between $7.182 billion and $7.198 billion, representing 61% growth at the midpoint. It expects U.S. commercial revenue to rise by at least 115%.

Image source: Getty Images.

Is the stock still a buy?

Palantir is arguably the most important company in the AI software space. AIP has become the operating system that organizations need to make AI useful in helping solve real-world problems, and growth has been explosive. With little competition, the company should continue to dominate this space.

Trading at around a 59 times forward price-to-sales (P/S) based on 2026 analyst estimates, the stock is not cheap. However, it is proving to be the premier AI stock outside the infrastructure sector, and it has the potential to grow into its valuation. While I wouldn't chase the stock, it would be one of the first on my radar to buy on any meaningful dip.

Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.