Palantir (PLTR) posted fourth quarter earnings and revenue above Wall Street’s expectations on Monday, bolstered by sales to the Trump administration and US businesses.
The company’s revenue surged 70% from the year-earlier period to $1.4 billion, ahead of the $1.3 billion expected by Wall Street analysts tracked by Bloomberg. Its adjusted earnings per share rose to $0.25 from $0.14 during the previous year, above the projected $0.23.
Palantir’s first quarter revenue guidance of $1.5 billion was also higher than the $1.3 billion estimated by analysts. And its full-year revenue outlook of roughly $7.2 billion was above the expected $6.3 billion.
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The firm’s outperformance in the fourth quarter was boosted by its domestic sales. Palantir’s US commercial revenue surged 137% to $507 million, greater than the $479 million projected, and its US government revenue jumped 66% to $570 million, more than analysts’ estimate of $522 million for the segment.
Palantir stock climbed over 8% after the bell following the results. The stock had suffered from a recent sell-off in software equities and concerns over the company’s lofty valuation. The shares are down roughly 12% over the past month, tracking a broader decline among industry players in the S&P 500 (^GSPC), as investors have worried about the possibility of AI displacing established software firms.
During an interview with Yahoo Finance’s Josh Lipton ahead of the results, CEO Alex Karp acknowledged that AI could pose a hurdle to software providers.
“In tech, you only have a time horizon of a couple years. You can’t say we will never be disrupted,” he said. “But we made investments in this tech years ago, all of which we thought would be valuable.”
Karp said that “the products and the culture we have are ideally built for the time we are in now” and that Palantir is “a different species of company.”
William Blair analyst Louis DiPalma upgraded Palantir stock Monday to Outperform from Market Perform, saying its drawdown has made the firm’s valuation “more reasonable.” He also pointed to the company’s work with the Trump administration — though that relationship, including Palantir’s work with ICE, has drawn significant public criticism.
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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Read More: Palantir Q4 earnings beat Wall Street estimates on strong sales to US
