Palantir Technologies saw its shares soar over 15% in after-hours trading on Monday after the company posted stronger-than-expected fourth-quarter earnings and revenue, fueled by its expanding artificial intelligence capabilities and growing demand from both government and commercial clients.
The data analytics firm, known for its deep ties to US defense agencies, also provided an optimistic outlook for 2025, further boosting investor confidence.
Palantir’s earnings beat expectations
Palantir’s fourth-quarter results outperformed Wall Street estimates:
Earnings per share (adjusted): 14 cents vs. 11 cents expected
Revenue: $828 million vs. $776 million expected
The company’s revenue increased 36% year-over-year, climbing from $608.4 million in the same quarter last year.
For the full year, sales rose 29%, driven by surging demand for its AI-driven data analytics tools.
Looking ahead, Palantir projected first-quarter revenue between $858 million and $862 million, significantly above the $799 million consensus estimate.
The company also raised its full-year guidance, expecting sales between $3.74 billion and $3.76 billion, surpassing analysts’ forecasts of $3.52 billion.
CEO Alex Karp credited much of the company’s success to its deep integration of artificial intelligence, reinforcing its position as a leader in the AI revolution.
“Our business results continue to astound, demonstrating our deepening position at the center of AI adoption,” Karp said in the earnings release.
“The commoditization of large language models is no longer a theory—it is now fact.”
Palantir’s US commercial segment saw 64% growth, generating $214 million in revenue, while its US government business rose 45% year-over-year to $343 million.
Palantir Q4 earnings: stock momentum and AI leadership
Palantir’s stock has been on a massive rally, surging 340% in 2024, buoyed by its entry into the S&P 500 and Nasdaq 100.
The firm has benefited from the broader boom in generative AI, following OpenAI’s ChatGPT launch in late 2022.
In a recent CNBC interview, Karp emphasized Palantir’s commitment to shaping the future of AI-driven businesses, asserting that its primary objective is strengthening American companies.
He also addressed concerns over China’s AI advancements, particularly the rise of DeepSeek, which rattled global markets last week.
“Technology is not inherently good,” Karp said. “We have to run harder, run faster, and make this an all-country effort to stay ahead.”
With its robust earnings, bullish outlook, and expanding AI-driven business, Palantir continues to solidify itself as a major player in the AI and defense technology landscape.
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