Palantir's Stock Soars 22% After Beating Q4 Earnings Expectations
Palo Alto, Tuesday, 4 February 2025.
Palantir Technologies reported Q4 2024 revenue of $828 million, surpassing estimates. The company projects 2025 revenue between $3.74 billion and $3.75 billion, boosting its stock by 22%.
Strong Performance Across Key Metrics
Palantir Technologies Inc. (NYSE: PLTR) delivered exceptional fourth-quarter results for 2024, with revenue reaching $828 million, marking a 36% increase year-over-year [1][2]. The company’s performance was particularly strong in its U.S. operations, with commercial revenue growing 64% to $214 million and government revenue increasing 45% to $343 million [1]. Adjusted earnings per share reached 14 cents, significantly outperforming analyst expectations of 11 cents [2].
AI-Driven Growth and Market Position
CEO Alex Karp emphasized Palantir’s central role in the AI revolution, highlighting how the company’s early insights into large language models have evolved from theory to practical applications [2]. The company’s strategic focus on AI has paid off since launching its ‘Artificial Intelligence Platform’ in early 2023 [1]. This success contributed to Palantir’s impressive 340% stock price increase in 2024, leading to its inclusion in both the S&P 500 and Nasdaq 100 [2].
Robust 2025 Outlook
Looking ahead, Palantir has provided strong guidance for 2025, projecting revenue between $3.74 billion and $3.75 billion, substantially exceeding analyst expectations of $3.5 billion [1]. The company forecasts 54% growth in U.S. commercial revenue and anticipates adjusted free cash flow of $1.6 billion for 2025, surpassing estimates of $1.28 billion [1]. This positive outlook has reinforced investor confidence, as evidenced by the stock’s latest surge and its Composite Rating of 99, indicating top growth potential [1].
Deal Flow and Financial Health
The company’s momentum is further demonstrated by its strong deal flow, having closed 129 deals worth at least $1 million in Q4 2024, with a record-setting U.S. commercial total contract value of $803 million [4]. Palantir’s financial position remains solid with $5.2 billion in cash, cash equivalents, and short-term U.S. Treasury securities as of December 31, 2024 [4]. The company achieved a GAAP net income of $79 million for Q4, representing a 10% margin [4].