Palantir Technologies Inc. shares surged 25% on Thursday, reaching a record high driven by better-than-expected fourth-quarter earnings and optimistic guidance fueled by artificial intelligence (AI). The software company exceeded analysts' revenue and earnings expectations, signaling strong momentum in its commercial and government segments.
Palantir Technologies soared 25% to a record high on Thursday, fueled by better-than-expected fourth-quarter results and optimistic guidance fueled by artificial intelligence (AI). The Denver-based software company reported adjusted earnings of 14 cents per share and $828 million in revenue, surpassing analyst estimates of 11 cents per share and $776 million in revenue, respectively.
This impressive performance reflects the growing momentum within Palantir's commercial and government segments, as CEO and co-founder Alex Karp described it as 'unlike anything that has come before.' Shares have rallied 36% since the beginning of the year and were poised for their best day in nearly a year. Palantir also provided upbeat guidance for the current quarter and the full year. For the first quarter, the company anticipates revenue between $858 million and $862 million, exceeding the LSEG estimate of $799 million. For the full year, Palantir projects sales of $3.74 billion to $3.76 billion, surpassing the $3.52 billion estimate.Palantir's success is largely attributed to its AI platform, which has gained significant traction amidst the ongoing investor excitement surrounding the technology. The company provides software and technology services, and is widely recognized for its work with defense agencies. In a letter to shareholders, Karp emphasized the company's commitment to the U.S. and its role in making the country 'more lethal' to deter adversaries. He stated, 'We are at the way beginning of our trajectory, we are at the way beginning of a revolution, and we plan to be a cornerstone — if not the cornerstone company — and driving this revolution in the U.S. over the next three to five years.' The recent surge in popularity of DeepSeek, an AI model, shook financial markets and raised concerns about the high costs associated with AI models. Karp believes this development serves as a wake-up call for America, urging the country to maintain its competitive edge in AI development. Several Wall Street firms have responded positively to Palantir's report, raising their price targets on the stock. Bank of America's Mariana Perez Mora hailed Palantir as an AI 'value adder' and increased her price target. Morgan Stanley upgraded shares to equal weight from underweight, acknowledging their previous underestimation of the company's growth potential. Analyst Sanjit Singh wrote, 'Given the strength of the outlook, we acknowledge that we were wrong about our core fundamental catalyst of slowing growth below the 30% level due to the tougher compares in 2025. This leaves us with valuation as the primary remaining concern.' The strong performance and positive outlook have solidified Palantir's position as a leader in the AI industry, with its future growth prospects remaining promising.
PALANTIR AI EARNINGS TECHNOLOGY SOFTWARE INVESTORS STOCK PERFORMANCE RECORD HIGH DEFENSE AGENCIES
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