Palantir (PLTR) Q4 earnings 2024

Palantir shares surged as a lot as 22% in prolonged buying and selling on Monday after the software program firm reported fourth-quarter earnings and income that surpassed Wall Avenue’s estimates.

This is how Palantir did versus estimates from analysts polled by LSEG:

• Earnings per share: 14 cents adjusted vs. 11 cents anticipated
• Income: $828 million vs. $776 million anticipated

Together with the fourth-quarter beat, Palantir supplied better-than-expected steering. The corporate stated it expects income of between $858 million and $862 million, forward of an LSEG estimate of $799 million. For the complete 12 months, Palantir forecast gross sales of $3.74 billion to $3.76 billion, topping the $3.52 billion common estimate.

Palantir is a significant supplier of software program and expertise providers to protection businesses. CEO Alex Karp attributed a lot of the corporate’s development to its use of synthetic intelligence.

“Our enterprise outcomes proceed to astound, demonstrating our deepening place on the heart of the AI revolution,” Karp stated within the earnings launch. “Our early insights surrounding the commoditization of enormous language fashions have advanced from idea to truth.”

Income elevated 36% within the quarter from $608.4 million a 12 months earlier. For the complete 12 months, gross sales elevated 29%. Karp stated in a letter to shareholders that the momentum the corporate is experiencing throughout its business and authorities segments is “not like something that has come earlier than.”

Palantir stated its U.S. business income grew 64% from a 12 months in the past to $214 million, whereas U.S. authorities revenues rose 45% 12 months over 12 months to $343 million. The corporate stated its expects U.S. business gross sales to develop at the very least 54% to about $1.08 billion in 2025.

“We’re nonetheless within the earliest levels, the start of the primary act, of a revolution that may play out over years and a long time,” Karp stated, including that the corporate has “been getting ready for this second diligently for greater than twenty years.”

The outcomes comply with a large rally in Palantir’s inventory, which soared 340% in 2024. The corporate joined each the S&P 500 and Nasdaq 100 final 12 months.

Palantir has benefited from the growth in generative AI following the discharge of OpenAI’s ChatGPT in late 2022. In an interview with CNBC final week, Karp stated Palantir is poised to steer the transformation of American firms, and he asserted that bolstering the U.S. is its “main goal.”

Karp additionally responded to latest worries surrounding the ascent of China’s DeepSeek, which pummeled monetary markets early final week and spurred fears concerning the hefty spending megacaps have funneled into AI infrastructure and China’s tech developments.

“Know-how just isn’t inherently good,” he informed CNBC’s Sara Eisen within the interview. “Now we have to acknowledge that, however that additionally simply means we’ve got to run more durable, run quicker, have an all-country effort.”