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

Cătălin Roșioru

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