Palantir Surges 15% After Beating Earnings, Revenue Estimates

PALO ALTO, Calif. — Palantir Technologies Inc. shares surged more than 15% in extended trading Monday after the software company reported fourth-quarter earnings and revenue that exceeded Wall Street’s expectations. The company also provided optimistic guidance for the coming year, further boosting investor confidence.

Palantir reported revenue of $608.4 million for the quarter, a 36% increase from the same period a year earlier. For the full year, sales rose 29%. The company’s U.S. commercial revenue grew 64% year-over-year to $214 million, while U.S. government revenue increased 45% to $343 million.

CEO Alex Karp attributed the company’s strong performance to its leadership in artificial intelligence (AI). “Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution,” Karp said in the earnings release. “Our early insights surrounding the commoditization of large language models have evolved from theory to fact.”

Palantir, a major provider of software and technology services to defense agencies, forecasted first-quarter revenue between $858 million and $862 million, surpassing the $799 million estimate from analysts polled by LSEG. For the full year, the company expects sales of $3.74 billion to $3.76 billion, topping the $3.52 billion average estimate.

Karp emphasized the company’s long-term vision in a letter to shareholders, stating, “We are still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades.” He added that Palantir has been preparing for this moment for more than two decades.

The earnings report follows a remarkable rally in Palantir’s stock, which soared 340% in 2023. The company has benefited from the generative AI boom following the release of OpenAI‘s ChatGPT in late 2022. Karp recently asserted that Palantir is poised to lead the transformation of American companies, with bolstering the U.S. as its “primary objective.”

Karp also addressed concerns about China‘s advancements in AI, particularly the rise of DeepSeek, which rattled financial markets last week. “Technology is not inherently good,” he said in an interview. “We have to acknowledge that, but that also just means we have to run harder, run faster, have an all-country effort.”