Imad Tardeh was found guilty of attempted murder, the army said in a statement.
The court also ordered him to pay compensation to his victims totalling 220,000 shekels (USD 60,000, 55,000 euros).
Tardeh was 19 when he stabbed the four Israelis in the central city of Rishon LeTzion, near Tel Aviv, in November 2015, wounding three, one of them seriously, before being arrested by police.
Israeli media said that the West Bank resident struck a deal with authorities and made a full confession.
Most of the Palestinians killed were carrying out knife, gun or car-ramming attacks, the Israeli authorities say.
Others were shot dead during protests or clashes, while some were killed in Israeli air strikes on the Gaza Strip.
The violence has subsided in recent months.
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