Palantir Technologies (PLTR) announced impressive earnings and revenue for the fourth quarter on Monday, significantly exceeding Wall Street projections. The company’s robust performance was driven primarily by strong growth in both its U.S. government and commercial sectors, further bolstering optimism around artificial intelligence stocks.
Following the announcement, Palantir’s stock surged over 15%, reaching $96.74 in after-hours trading. Chief Executive Officer Alex Karp noted in a letter to shareholders the company’s newfound internal momentum and growth, stating, “A software juggernaut has indeed emerged.”
For the fourth quarter, Palantir reported adjusted earnings of 14 cents per share, a notable increase of 75% from the previous year’s 8 cents. Revenue for the quarter rose by 36% to $828 million. U.S. commercial revenue saw an impressive growth of 64% year-over-year to $214 million, while U.S. government revenue increased by 45% to $343 million.
Forecasting for the full year 2025, Palantir projects revenue to fall between $3.74 billion and $3.75 billion, surpassing analysts’ expectations of $3.5 billion. The company anticipates a 54% increase in U.S. commercial revenue and an adjusted free cash flow of $1.6 billion, exceeding estimates of $1.28 billion.
This positive momentum follows a remarkable performance in 2024 when Palantir’s stock skyrocketed by 340%. The stock previously reached an all-time intraday high of $85.22 at the end of January.
Palantir’s data analytics software, utilized extensively in government sectors for intelligence and military applications, is continuing to evolve by targeting generative artificial intelligence opportunities across healthcare, energy, and manufacturing industries. The company also launched its “Artificial Intelligence Platform” earlier this year, strengthening its position in the AI marketplace.
As for its technical ratings, Palantir boasts a Composite Rating of 99, indicating exceptional growth potential, while its Accumulation/Distribution Rating is B, signaling a moderate level of institutional buying interest.
This data reflects Palantir’s solid financial health and growth prospects as it navigates the rapidly evolving landscape of AI technology, fostering hope for continued success in the years to come.
In summary, Palantir Technologies is experiencing significant growth, particularly in its U.S. operations, and is well-poised for further expansion in the burgeoning AI sector.