Palantir Technologies Inc. (NASDAQ: PLTR) saw its stock rise about 5% following an analyst update from William Blair that reaffirmed its Outperform rating. The positive market reaction came as investors digested the company’s strong guidance for 2026 and better-than-expected recent results.

According to the latest data, Palantir’s stock has delivered a strong year-long return despite recent volatility, with the company outperforming market expectations. William Blair’s reaffirmation highlights confidence in Palantir’s growth trajectory, particularly in securing significant government contracts and expanding commercial demand for its data analytics tools.

The firm pointed to robust fourth-quarter financials that exceeded consensus expectations. Palantir reported revenue of $1.41 billion, topping the estimated $1.34 billion, and saw accelerated growth in U.S. commercial revenue. Adjusted operating income also came in ahead of forecasts, with improved operating margins reflecting efficiency gains.

Looking ahead, Palantir projects revenue around $7.2 billion in 2026, well above Wall Street consensus expectations. The company also anticipates strong operating income and free cash flow levels, underpinning the positive analyst outlook.

In its analysis, William Blair emphasized Palantir’s deepening role in mission-critical analytics platforms for government agencies, citing recent multi-hundred-million-dollar contracts with branches such as the U.S. Navy and the National Geospatial-Intelligence Agency.