Palantir and Teradyne released stronger-than-expected fourth-quarter results on Monday after the market close, and investors quickly interpreted the reports as a positive signal for Nvidia ahead of its Feb. 25 earnings release. Palantir reported sharp revenue and EPS gains led by U.S. commercial growth, while Teradyne cited AI-driven demand for semiconductor test equipment and raised expectations for 2026. Both stocks rallied on Tuesday, and the outturns add external support to Nvidia’s earlier guidance for a very large Q4. Market watchers say these results strengthen the case that demand for AI compute and associated supply-chain services remains robust.
Key Takeaways
- Palantir’s Q4 revenue rose 70% year over year to $1.41 billion, driven by U.S. commercial revenue of $507 million (up 137%) and U.S. government revenue of $570 million (up 66%).
- Palantir’s adjusted EPS for Q4 increased 79% to $0.25, and management gave 2026 revenue guidance of about 61% annual growth.
- Teradyne reported Q4 revenue of $1.08 billion, a 44% year-over-year increase, and adjusted EPS of $1.80, up 89% year over year and above the $1.38 analyst consensus.
- Teradyne attributed its strength to testing demand for AI-related compute and memory chips and expects year-over-year growth across its businesses in 2026.
- Both Palantir and Teradyne stocks jumped in after-hours/next-day trading: Palantir ~6.8% and Teradyne ~13.4% on Tuesday.
- Nvidia is scheduled to report fiscal Q4 and full-year 2026 results on Wednesday, Feb. 25 after the market close, with management having guided roughly $65 billion revenue for Q4 (about 65% YoY) and adjusted EPS near $1.50 (about 69% YoY).
Background
The recent rally in AI-related equities has been anchored by Nvidia’s dominant position in AI accelerators — GPUs and associated software that power large-scale machine learning workloads. Nvidia supplies key hardware and a growing software/toolchain ecosystem that has made it central to the enterprise and cloud AI stacks. Suppliers, partners, and customers across the semiconductor and software stack therefore serve as indirect indicators of demand for Nvidia’s products.
Palantir operates an AI-driven data analytics platform used by government and commercial clients and integrates Nvidia GPUs and other hardware into its offerings. Teradyne builds automated test equipment used by semiconductor manufacturers to validate chips, including AI compute and memory dies; its customers include foundries such as TSM. Because foundries, test-equipment vendors, and enterprise AI software providers are linked in the production and deployment chain, solid results across those companies are often interpreted as demand confirmation for Nvidia’s market.
Main Event
Palantir reported fourth-quarter revenue of $1.41 billion, a 70% increase versus the prior year, with U.S. commercial revenue jumping 137% to $507 million and U.S. government revenue rising 66% to $570 million. Adjusted EPS climbed 79% to $0.25. Management also issued guidance pointing to roughly 61% revenue growth for fiscal 2026, a beat versus consensus estimates and a signal that commercial uptake of Palantir’s AI capabilities accelerated in the quarter.
Teradyne said Q4 revenue reached $1.08 billion, up 44% year over year, and reported adjusted EPS of $1.80, an 89% increase that outpaced the $1.38 analysts had expected. Company executives tied the performance explicitly to testing demand for AI-focused chips — both compute GPUs and memory devices — and flagged expected year-over-year growth across businesses in 2026, with compute momentum cited as particularly strong.
Markets reacted swiftly: Palantir shares rose about 6.8% on Tuesday, while Teradyne shares climbed approximately 13.4% the same day. Traders and investors interpreted the results as corroboration of sustained enterprise and infrastructure spending on AI, providing positive context for Nvidia’s own upcoming release and reinforcing investor expectations that Nvidia’s guidance could be attainable.
Analysis & Implications
The two earnings reports offer complementary pieces of evidence about different parts of the AI ecosystem. Palantir’s strength points to robust software and services demand from enterprises and government customers that are deploying AI at scale, which typically requires substantial GPU capacity. That demand flows upstream to hardware makers and the foundries and test-equipment vendors that enable production.
Teradyne’s results are a more direct indicator of the semiconductor manufacturing pipeline: higher bookings and revenue for test equipment imply ongoing wafer fabrication and chip validation activity, including for AI compute and memory products. Because Nvidia relies on external foundries and memory suppliers, stronger capital intensity at those nodes implies continued production of components Nvidia purchases or designs around.
For Nvidia specifically, the combined signals reduce one uncertainty facing investors ahead of the Feb. 25 report: demand visibility. If software developers and production-line vendors are both seeing elevated activity, that increases the probability Nvidia’s previously guided $65 billion Q4 revenue and $1.50 adjusted EPS targets are achievable. However, timing, inventory dynamics, and capacity constraints still leave room for variance between guidance and final results.
Comparison & Data
| Company | Q4 Revenue | YoY Revenue | Adj EPS | Adj EPS YoY |
|---|---|---|---|---|
| Palantir (Q4) | $1.41B | +70% | $0.25 | +79% |
| Teradyne (Q4) | $1.08B | +44% | $1.80 | +89% |
| Nvidia (Q4 guidance) | $65.0B | +65% | $1.50 | +69% |
The table highlights scale differences: Nvidia’s guided revenue figure is orders of magnitude larger than Palantir’s and Teradyne’s quarterly sales, reflecting Nvidia’s role as a core supplier of high-volume AI compute. Palantir’s strength is notable for software-led demand, while Teradyne’s numbers show manufacturing-side robustness; together they create a cross-section of demand from application layer to chip production.
Reactions & Quotes
‘In 2026, we expect year-over-year growth across all of our businesses, with strong momentum in compute driven by AI.’
Greg Smith, Teradyne CEO
‘Palantir stock jumped about 6.8% on Tuesday following the quarter-end report.’
Market close data
‘Teradyne shares rose roughly 13.4% the following trading session after the results were released.’
Market close data
Unconfirmed
- Whether Nvidia will meet or exceed its $65 billion Q4 revenue guidance remains unconfirmed until the company reports on Feb. 25 and host commentary on the earnings call is parsed.
- It is not yet confirmed how much of Palantir’s growth is recurring versus one-time project revenue; long-term sustainability will depend on contract composition and retention.
- Teradyne’s commentary links strength to AI demand, but the pace at which foundries can translate orders into shipped devices for Nvidia’s specific SKUs is not fully known.
Bottom Line
Palantir’s and Teradyne’s strong fourth quarters offer corroborating evidence that demand for AI software, compute hardware, and the manufacturing services that support them remains elevated. For Nvidia investors, the reports reduce some downside risk by showing customers and suppliers reporting healthy activity ahead of Nvidia’s Feb. 25 release.
That said, Nvidia’s results will still hinge on production timelines, gross-margin dynamics, and end-market unit growth; investors should watch the company’s earnings call for details on inventory, channel fill, and multi-quarter demand patterns. The immediate market reaction rewarded both Palantir and Teradyne, but the durable implications for Nvidia will become clearer only after the company’s own financials and management commentary are disclosed.