Palantir Shares Soar 22% After Strong Earnings and Positive Outlook

Palantir Shares Soar 22% After Strong Earnings and Positive Outlook

Shares of Palantir jumped as much as 22% in after-hours trading on Monday following the company’s fourth-quarter earnings and revenue that exceeded Wall Street’s expectations.

Key Highlights:

• Palantir posted stronger-than-expected earnings and profits for the fourth quarter.
• Shares rose more than 22% on the positive results and upbeat outlook.
• The earnings report follows a historic surge in the company's stock in 2024.

Palantir’s Financial Performance vs. Analyst Expectations:

• Earnings per share: 14 cents adjusted, compared to 11 cents expected.
• Revenue: $828 million, versus $776 million anticipated.

In addition to the fourth-quarter beat, Palantir issued a more optimistic forecast. The company projects revenue between $858 million and $862 million, ahead of the $799 million estimate. For the entire year, Palantir expects sales between $3.74 billion and $3.76 billion, surpassing the $3.52 billion average estimate.

Palantir, a key supplier of software and technology services to defense agencies, attributed much of its growth to artificial intelligence. CEO Alex Karp commented, “Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution,” and noted that early predictions around the commoditization of large language models had turned into reality.

Quarterly and Yearly Revenue Growth:

• Quarterly revenue rose 36% year-over-year to $828 million, up from $608.4 million.
• For the full year, sales increased by 29%.

Karp highlighted the company’s strong momentum across both its commercial and government sectors, describing it as “unlike anything that has come before.” Palantir reported U.S. commercial revenue growth of 64%, totaling $214 million, while U.S. government revenue grew 45% to $343 million. The company expects U.S. commercial sales to reach at least $1.08 billion in 2025, a 54% increase.

“We are still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades,” Karp remarked, emphasizing the company's long-term vision after 20 years of preparation.

These results come on the heels of a significant surge in Palantir’s stock, which soared 340% in 2024. The company was added to both the S&P 500 and Nasdaq 100 last year.

Palantir has been a major beneficiary of the boom in generative AI, particularly following the release of OpenAI’s ChatGPT in late 2022. In a recent interview with CNBC, Karp expressed confidence that Palantir is poised to lead the transformation of U.S. companies and reiterated that strengthening the U.S. remains the company’s “primary objective.”

Karp also addressed concerns regarding the rise of China’s DeepSeek, which had rattled global markets earlier in the week and stoked fears over the extensive investments being made in AI infrastructure by large tech companies and China’s technological advancements.

“Technology is not inherently good,” Karp said during the CNBC interview. “We have to acknowledge that, but that also just means we have to run harder, run faster, have an all-country effort.”

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