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Shares of Palantir Technologies (PLTR, Financial) soared more than 18% in Pre-market trading on Tuesday after the company beat Wall Street estimates in its fourth quarter. That helped reinforce investor confidence in the company's fast-growing artificial intelligence and defense technology.
Adjusted earnings per share at Palantir came in at $0.14, beating expectations of $0.11 per share. Revenue grew 36% year over year to $828 million, beating a consensus of $776 million. The company also increased its first quarter 2025 revenue guidance to $858 to $862 million, above analysts' estimate of $799 million.
Palantir, which expects sales of $3.74 billion to $3.76 billion for the full year, has also surpassed the projected $3.52 billion. Adjusted income from operations was $373 million, which is a 45% margin.
Strong demand for AI-driven software in commercial and government sectors drove growth. U.S. commercial revenue increased 64 percent to $214 million; U.S. government revenue jumped 45 percent to $343 million. Palantir's early adoption of large language models was a big deal, Alex Karp, CEO of Palantir, noted.
Looking further, Palantir anticipates U.S. commercial revenue to be developed by a minimum of 54 percent in 2025 to around $1.08 billion.
This article first appeared on GuruFocus.