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Palantir’s Shares Surge 22% Following Robust Q4 Earnings and Positive Outlook

Prime Highlights: 

Palantir’s shares jumped 22% in after-hours trading following strong Q4 results. 

The company reported adjusted earnings of 14 cents per share, exceeding the 11-cent estimate. 

Q4 revenue reached $828 million, surpassing expectations of $776 million. 

Key Background: 

Palantir Technologies saw its shares soar by over 22% in after-hours trading on February 3, 2025, after the company reported strong fourth-quarter earnings and revenue that exceeded Wall Street’s expectations. The software company posted adjusted earnings per share of 14 cents, surpassing the forecasted 11 cents, and revenue of $828 million, exceeding analysts’ estimates of $776 million. This performance came alongside an optimistic outlook for the upcoming year, with Palantir expecting revenues between $858 million and $862 million for Q1, ahead of the $799 million forecast. For the full year, the company projected sales of $3.74 billion to $3.76 billion, well above the $3.52 billion average estimate. 

Palantir, a key provider of software and technology services, particularly to government and defense sectors, credited much of its growth to its strategic advancements in artificial intelligence. CEO Alex Karp highlighted the company’s evolving position at the center of the AI revolution, emphasizing the impact of large language models. Revenue in the fourth quarter rose by 36% from the previous year, and full-year sales increased by 29%. Notably, U.S. commercial revenue grew by 64% to $214 million, while U.S. government revenue increased by 45% to $343 million. 

Palantir’s performance in 2024, including a 340% stock rally and its inclusion in the S&P 500 and Nasdaq 100, positions the company as a leader in the AI-driven transformation. Karp stressed that the company is still in the early stages of this shift, with expectations for continued growth, particularly within the commercial sector, which is projected to reach $1.08 billion in 2025. In an interview, Karp also responded to concerns about global competition, particularly from China’s advancements in AI, asserting that Palantir’s focus remains on bolstering the U.S. and leading the charge in AI development.