Palantir Surges on Strong Q4, CEO Karp Highlights AI's Future Impact

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Palantir (NASDAQ:PLTR) shares have been running hot with its CEO Alex Karp expressing optimism about the newly formed Department of Government Efficiency (DOGE), predicting that federal cost-cutting efforts could benefit the company due to its extensive government contracts.

Q4 Earnings Beat Expectations

  • Earnings per share: $0.14 (beat by $0.03)

  • Revenue: $828 million (beat by $52 million)

  • U.S. revenue growth: 52% YoY

  • U.S. government revenue: $1.2 billion in FY2024 (+30% YoY), with Q4 growth accelerating to 45%

  • U.S. commercial revenue: $214 million in Q4 (+64% YoY, +20% QoQ)

Karp's Outlook on Disruption & AI Growth

During the earnings call, Karp highlighted that government spending efficiency measures could provide new opportunities for Palantir, which derives two-thirds of its U.S. revenue from government contracts. He described AI-driven disruption as a long-term transformation, stating:

"We are still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades."

This article first appeared on GuruFocus.