U.S. defense technology stock Palantir's earnings guidance exceeded expectations, soaring 24% in after-hours trading | Earnings report insights
Palantir released its fourth-quarter financial report, with revenue increasing by 36% year-on-year to $827.5 million, exceeding analysts' expectations. The adjusted earnings per share were 14 cents, also higher than expected. The company forecasts revenue will reach $3.75 billion and operating profit will be $1.56 billion by 2025, both surpassing analysts' estimates. Following the performance guidance, Palantir's stock price surged 24% in after-hours trading. CEO Alex Karp stated that the widespread application of AI technology has driven the company's growth
AI popular stock Palantir released its fourth-quarter financial report after the market closed on Monday, predicting that annual revenue will exceed analysts' expectations. Driven by this news, Palantir's stock price surged 24% in after-hours trading on Monday.
Here are the key points from Palantir's fourth-quarter financial report:
Key Financial Data:
Revenue: Fourth-quarter revenue increased by 36% year-on-year, reaching $827.5 million, higher than analysts' expectations of $775.9 million.
Adjusted Earnings Per Share: Adjusted earnings per share for the fourth quarter were $0.14, while analysts expected $0.11.
Performance Guidance:
First Quarter Revenue: First-quarter revenue is expected to be between $858 million and $862 million, exceeding analysts' estimate of $799 million.
2025 Annual Revenue: Revenue for 2025 is expected to reach $3.75 billion, higher than the average analyst expectation of $3.54 billion.
2025 Annual Operating Profit: Adjusted operating profit for 2025 is expected to be $1.56 billion, exceeding the average analyst expectation of $1.37 billion.
Palantir's stock price closed up 1.52% on Monday, at $83.74. Due to the performance guidance exceeding analysts' expectations, Palantir's stock price surged 24% in after-hours trading on Monday.
Palantir is a major software and technology service provider for U.S. defense agencies and has gained attention in recent years due to its AI platform. In 2024, the company's stock price soared 340%, primarily due to investor enthusiasm for AI and an increasing number of commercial and government clients adopting its data analysis software. CEO Alex Karp attributed the company's growth to the widespread application of AI technology:
“Our business growth is astonishing, further solidifying our position at the core of the AI revolution.”
“Our early predictions about the commercialization of large language models (LLMs) have now turned from theory into reality.”
Palantir stated that as the company deepens its collaboration with the U.S. Department of Defense, revenue from U.S. government business grew by 45%, reaching $343 million. Meanwhile, U.S. commercial revenue increased by 64%, reaching $214 million.
Karp also mentioned that Palantir is entering "a new stage of development" and warned that other U.S. companies have failed to take on the responsibility of safeguarding U.S. interests due to "technological complacency."
“We are still in the earliest stages of the AI transformation, merely at the beginning of the first act.”
“This transformation will last for years, even decades.”
"Palantir has been preparing for this moment for over 20 years."
The company stated that Palantir's technology is now used by all branches of the U.S. military and has been adopted by the Ukrainian and Israeli armed forces. The company has also recently extended its collaboration contract with the U.S. Army to 2028, with a total amount of up to $619 million, while expanding its AI business with the U.S. Special Operations Command.
As interest in defense technology companies heats up in Silicon Valley, Palantir is also deepening collaborations with other tech companies. The company has strengthened its new partnership with AI startup Anthropic, introducing its large language model. Palantir executives believe these initiatives represent the beginning of a new defense ecosystem in the U.S., where the leaders will be software companies rather than traditional defense contractors.
After Donald Trump was elected President of the United States, investors showed strong interest in Palantir's stock performance, hoping the company would strengthen U.S. defense and manufacturing. Palantir's Chief Technology Officer Shyam Sankar released a blueprint in October to revitalize the U.S. industrial base and has testified multiple times before the U.S. Congress to advocate for defense innovation and procurement reform.
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