Palantir surges 24% to record high as AI fuels strong earnings

Palantir shares jumped 24% on Tuesday, hitting a record high after the company reported stronger-than-expected earnings and issued bullish guidance.

The surge pushed its market value close to that of IBM and Cisco, marking its best trading day in nearly a year.

The software company posted fourth-quarter adjusted earnings of 14 cents per share on US$828 million in revenue, beating analyst expectations of 11 cents per share and US$776 million in revenue. 

Palantir also projected first-quarter sales between US$858 million and US$862 million, well above Wall Street’s estimate of US$799 million. For the full year, the company expects revenue between US$3.74 billion and US$3.76 billion, surpassing forecasts of US$3.52 billion.

Palantir’s stock soared 340% in 2024, driven by growing adoption of its AI-powered software. 

The company, best known for its work with defense agencies, has also seen strong commercial traction, reporting 64% growth in US commercial revenue and a 45% increase in US government revenue year over year. It expects US commercial sales to grow 54% in 2025.

CEO Alex Karp highlighted the company’s momentum, calling it “unlike anything that has come before.” 

He positioned Palantir as a key player in AI’s future, saying, “We are at the very beginning of a revolution, and we plan to be a cornerstone—if not the cornerstone company—driving this transformation in the US over the next three to five years.”

Karp also emphasized Palantir’s role in national security, stating the company is making the US “more lethal” to deter adversaries.

His remarks followed recent market volatility sparked by DeepSeek’s rapid rise, which raised concerns about AI costs and competition.

Several Wall Street firms raised their price targets for Palantir following the earnings report. Morgan Stanley upgraded the stock, while Bank of America analyst Mariana Perez Mora called Palantir an AI “value adder.” 

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