Palantir’s Q4 Earnings Exceed Wall Street Estimates

Palantir Technologies (NYSE: PLTR) saw its shares surge 22% in extended trading on Monday after posting fourth-quarter earnings that outperformed analyst expectations.

Here’s how Palantir performed against estimates from analysts polled by LSEG:

• Earnings per share (EPS): 14 cents adjusted vs. 11 cents expected
• Revenue: $828 million vs. $776 million expected

Alongside its earnings beat, Palantir also provided an optimistic revenue outlook, forecasting $858 million to $862 million for the next quarter—well above the $799 million estimate.

AI Drives Palantir’s Explosive Growth

CEO Alex Karp credited the company’s success to its deepening role in artificial intelligence (AI). In the earnings release, Karp stated:

“Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution.”

Palantir’s revenue grew 36% year-over-year from $608.4 million, while full-year sales increased 29%. Karp emphasized that the company’s momentum across both commercial and government sectors is “unlike anything that has come before.”

Commercial and Government Revenue Growth

Breaking down Palantir’s performance:

• U.S. Commercial Revenue: Up 64% year-over-year to $214 million
• U.S. Government Revenue: Up 45% year-over-year to $343 million
• Projected 2025 U.S. Commercial Sales: Expected to grow at least 54% to approximately $1.08 billion

Palantir’s Stock Rallies 340% in 2024

Palantir’s stock has been on a remarkable 340% rally in 2024, reflecting strong investor confidence. The company also secured a position in the S&P 500 and Nasdaq 100 in 2023, further solidifying its status as a major player in the AI sector.

Palantir’s AI Dominance and Future Outlook

Since the launch of OpenAI’s ChatGPT in late 2022, the AI market has exploded. Palantir has positioned itself at the forefront of this revolution, with Karp stating in a CNBC interview that the company is leading the transformation of American businesses.

Responding to concerns about China’s AI advancements, Karp commented:

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

With AI continuing to dominate the tech landscape, Palantir is poised for even greater growth in 2025 and beyond.

Looking Ahead: What’s Next for Palantir?

Palantir has consistently delivered strong results, but can it maintain its momentum? Investors will be closely watching its next earnings report and how it continues to integrate AI into its operations.

Stay tuned for more updates on AI stocks and tech market trends!