Palantir shares surge 23% driven by earnings and sales upbeat 📈

The US technology & defence company, Palantir (PLTR.US) stock surged over 23% in after-hours trading following a 36% year-over-year revenue increase in Q4, reaching $827.5 million. The company forecasts 2025 revenue of $3.75 billion, exceeding analysts’ expectations. U.S. government revenue rose by 45% YoY to $343 million, while commercial revenue soared by 64% to $214 million.

Palantir Technologies provided an optimistic outlook, highlighting strong demand driven by artificial intelligence. CEO Alex Karp pointed to rapid organic growth in AI adoption across government and commercial sectors, fuelling investor confidence in the company's business expansion.

• Q4 Revenue: $827.5 million (+36% YoY), exceeding the $775.9 million consensus.
• Q4 Adjusted EPS: $0.14 (vs. $0.08 YoY), beating the $0.11 estimate.
• Q4 Adjusted Operating Profit: $372.5 million (+78% YoY), surpassing the $309.6 million forecast.
• 2025 Revenue Guidance: $3.74–3.76 billion (vs. consensus of $3.54 billion).
• 2025 Adjusted Operating Profit: $1.55–1.57 billion (vs. consensus of $1.37 billion).
• 2025 Free Cash Flow (Adjusted): Projected at $1.5–1.7 billion.

Palantir’s AI-driven expansion and growing U.S. government contracts have fueled positive sentiment among analysts. Morgan Stanley remains bullish, citing improving fundamentals and raising its price target to $95 (previously $60). Analysts highlight record revenue growth and sustained momentum.

Source: XTB Research, Bloomberg Finance L.P.

Operational Strength

• Government Sector Growth: U.S. government revenue surged 45% to $343 million, supported by expanding military and intelligence applications.
• Commercial Expansion: U.S. commercial revenue climbed 64% to $214 million, expected to reach $1.08 billion (+54%) in 2025.
• Defense Ecosystem Expansion: Palantir deepened its partnerships with defense tech firms like Anduril and AI startup Anthropic, reinforcing its role in the modern U.S. defense infrastructure.

Palantir’s strong revenue growth and AI-driven demand signal a promising trajectory, particularly in U.S. markets. While the company outperformed expectations, concerns remain regarding international sales slowdown and valuation. However, pre-market gains suggest investor optimism remains strong.

Source: xStation5