Software’s most controversial stock handed investors an antidote for a brutal month. PalantirPLTR

crushed Q4 expectations, with revenue jumping 70% year-over-year to $1.4B — well ahead of Wall Street estimates. The result came despite fears that AI could disrupt established software players, a sky-high valuation, and shares sliding ~29% from their November peak.

• Palantir’s US commercial revenue surged 137% YoY, while US government revenue climbed 66%, both exceeding forecasts by $48M.
• The outlook surprised to the upside, guiding Q1 revenue to $1.5B versus the $1.3B consensus and full-year revenue forecast ~$7.2B.

AI threat neutralized: CEO Alex Karp acknowledged disruption risks but emphasized Palantir is “a different species of company” with early AI investments positioning it in the right place at the right time. The results prompted William Blair analyst Louis DiPalma to upgrade the stock to Outperform, saying the selloff made valuation “more reasonable,” despite ongoing criticism tied to ICE work. DA Davidson analyst Gil Luria warned that “they have a tough bar to clear” — a reminder that the hardest part of winning is convincing the market you can keep doing it.