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(Bloomberg) -- Palantir Technologies Inc. shares jumped after giving a full-year revenue forecast that exceeded analysts’ estimates, thanks to what Chief Executive Officer Alex Karp described as “untamed organic growth” in demand for its artificial intelligence software.
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Sales will be about $3.75 billion in 2025, the Denver-based company said Monday in a statement. Adjusted operating income will be about $1.56 billion. Analysts, on average, projected revenue of $3.54 billion and operating profit of $1.37 billion.
Best known for its national security work, and more recently its AI platform, Palantir’s stock surged 340% in 2024. The company rode a wave of investor excitement for AI, and more commercial and government customers started using Palantir’s data analysis software.
Fourth-quarter revenue jumped 36% to $827.5 million, compared with analysts’ average estimate of $775.9 million. Profit, excluding some items, was 14 cents a share. Analysts, on average, estimated 11 cents.
The shares gained more than 23% in extended trading after closing at a record $83.74 in New York.
As the company deepens its connection with the US Defense Department, sales to the US government jumped 45% to $343 million. US commercial revenue gained 64% to $214 million in the period ended Dec. 31.
On a conference call after the results, Palantir Chief Technology Officer Shyam Sankar was asked about the potential effects of US President Donald Trump’s efforts to cut the federal government’s budget led by the Elon Musk-run Department of Government Efficiency.
“Palantir’s real competition is a lack of accountability in government,” Sankar said. “DOGE is going to bring meritocracy and transparency to government” and prompt it to function more like the commercial market.
Palantir projected US commercial sales in 2025 will rise about 54% to $1.08 billion.
Karp, in a letter to shareholders, said Palantir is in “a new phase” and warned against the “technical complacency” of other US companies failing to step up and serve US interests.
“We love disruption,” Karp said on the call. “Disruption at the end-of-the day exposes things that aren’t working, there’ll be ups and down. There’s a revolution. Some people get their heads cut off.”
The company’s technology is now used across all US military branches, and by American allies in Ukraine and Israel. Palantir also recently expanded one of its deals with the US Army to as much as $619 million through 2028, and extended its AI work with the US Special Operations Command.