Palantir Soars 22% Pre-Market as Q4 Earnings and 2025 Outlook Impress

Palantir Technologies Inc. (PLTR) shares surged more than 22% in pre-market trading on Monday, following the company's strong fourth-quarter earnings report and bullish outlook for 2025. The data analytics firm reported revenue of $828 million, up 36% year-over-year, driven by robust growth in both its U.S. commercial and government segments. Adjusted earnings per share (EPS) came in at $0.14, surpassing analyst expectations of $0.11, while GAAP EPS was in line at $0.03.

For fiscal 2025, Palantir issued a revenue forecast of $3.74 billion to $3.76 billion, sharply above consensus estimates of $3.50 billion to $3.53 billion. The guidance implies 31% year-over-year growth, signaling continued momentum as the company capitalizes on increasing demand for its AI-driven solutions.

Palantir's strong results and bullish outlook come as enterprises and government agencies continue to invest heavily in AI and data analytics, positioning the company for sustained growth in the year ahead. The company's AI platform, AIP, has played a significant role in its recent financial success, enabling enterprises to leverage AI-driven solutions for various applications.

Palantir's CEO, Alex Karp, attributed the company's growth to its early insights surrounding the commoditization of large language models, which have evolved from theory to fact. The company's AIP platform, released in mid-2023, has revved up Palantir's financial results, with U.S. commercial revenue growth surging 64% year over year in the fourth quarter of 2024. This growth is a testament to the value that AIP brings to enterprises and government agencies, enabling them to capitalize on AI trends.

Palantir's commercial revenue growth, particularly in the U.S., has been a significant driver of its overall revenue growth. In the fourth quarter of 2024, U.S. commercial revenue grew by 64% year-over-year, contributing to a 36% increase in total revenue. This strong performance was highlighted by the closure of 129 deals of at least $1 million, 58 deals of at least $5 million, and 32 deals of at least $10 million. Additionally, U.S. commercial total contract value (TCV) deals closed jumped 134% to $803 million, and U.S. commercial remaining deal value soared 99% to $1.79 billion.

Palantir's growth prospects remain strong, with the company projecting U.S. commercial revenue of $1.08 billion in 2025, representing a growth rate of at least 54%. As Palantir continues to invest in its AI capabilities and expand its reach, it is well-positioned to capitalize on the increasing demand for its solutions in the enterprise market.

In his shareholder letter, Karp highlighted the company's new phase of growth, stating that Palantir has the products and reach of an established incumbent and the speed, growth, and agility of an insurgent startup. This combination, driven by AIP's success, sets the stage for continued financial success and positions Palantir for future growth in the AI revolution.

Palantir's strong Q4 earnings and bullish outlook for 2025 demonstrate the company's ability to deliver on its financial targets and exceed analyst expectations. As enterprises and government agencies continue to invest in AI and data analytics, Palantir is well-positioned to capitalize on the growing demand for its AI-driven solutions. With its AI platform, AIP, driving strong commercial revenue growth, Palantir is poised for continued success in the AI revolution.