Palantir Technologies: A Stellar Q4 Performance Boosts Stock by 10%
Palantir Technologies stock experienced a significant surge of over 10% in early trading on Tuesday. This leap came in the wake of the AI software company’s fourth-quarter results, which notably surpassed Wall Street’s predictions. The data analytics firm reported a revenue of $1.41 billion, comfortably outstripping analyst estimates of $1.33 billion. Furthermore, the adjusted earnings per share of 25 cents exceeded the anticipated 23 cents.
Revenue witnessed a remarkable 70% increase from the same period in the previous year, fueled by a robust growth in both commercial and government sectors. US commercial revenue more than doubled to $507 million, while US government revenue saw a 66% rise to $570 million. The company’s collaborations with the Department of Defense and other federal agencies continue to be a significant growth catalyst.
In an interview with CNBC, CEO Alex Karp hailed the results as “indisputably the best results that I’m aware of in tech in the last decade”. Looking forward, Palantir’s guidance significantly outperformed expectations, projecting full-year 2026 revenue between $7.18 billion and $7.20 billion, compared to analyst estimates of $6.22 billion.
The impressive results arrive after Palantir shares had seen a decline of about 15% year-to-date, amidst wider concerns about software valuations and AI competition. However, the company has secured major contracts, including a potential $10 billion deal with the US Army and a $448 million agreement with the US Navy.
Source: CNBC