Palantir (PLTR) is set to report its fourth quarter earnings report after the bell Monday, and Wall Street expects another period of blowout results from the AI software firm.
The company is expected to see earnings per share soar to $0.23 from $0.14 in the year-ago period, while revenue is expected to surge more than 60% to $1.3 billion, according to analyst estimates tracked by Bloomberg.
While Palantir sells its enterprise software to both companies and governments, its sales to US businesses are expected to continue growing at a faster pace than its other segments, with revenue from commercial US sales projected to rise nearly 124% from the previous year to $479 million, per Bloomberg data.
Still, analysts expect revenue from sales to the US government to account for the highest share — roughly 40% — of Palantir’s revenue. Wall Street sees its US government businesses bringing in $522 million in the fourth quarter, up nearly 52% from 2024.
In November, Palantir’s third quarter results topped analyst estimates, but the stock suffered as Wall Street questioned the company’s stretched valuation. A recent sell-off in software equities has added pressure to Palantir shares as investors have worried over the possibility of AI displacing established software firms. PLTR shares are down more than 10% over the past month, tracking with a broader decline among industry players in the S&P 500 (^GSPC).
William Blair analyst Louie DiPalma upgraded Palantir stock on Monday to Outperform from Market Perform, saying the recent sell-off has made the company’s valuation — which he noted is still “frothy” — “more reasonable” relative to others in the AI ecosystem.
DiPalma added that the Trump administration “continues to go all-in with Palantir.” Though the company’s controversial partnership with ICE has drawn widespread criticism, the analyst said Palantir’s government work will likely amount to “a very strong December quarter.”
Palantir shares are set to rise or fall 9% following the company’s report, according to Bloomberg data. The stock rose nearly 3% in late morning trading ahead of Monday’s results.
Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.
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