Palantir Stock Gains 21.5% As Earnings Outlook Raised

Palantir's stock price (NYSE: PLTR) is a big pre-market gainer, up 21.5% after the tech company delivered earnings and guidance that blew away the street's expectations. Considering PLTR had been one of the stars of 2024, and with a 400% gain over the past 12 months, continuing to impress to the upside is no easy feat.

In its Q4 2024 financial results, Palantir reported a revenue of $828 million, marking a 36% increase compared to the same period the previous year. A notable contributor to this growth is the U.S. commercial sector, where revenue soared by 64%, suggesting the company is successfully decreasing its dependence on government contracts.

Despite an uptick in expenses related to stock appreciation rights (SARs), Palantir managed to achieve an adjusted net income of $165 million. This achievement reflects its operational efficiency and strategic focus on high-demand areas like artificial intelligence.

CEO Alex Karp emphasised Palantir's ongoing transformation into a formidable entity in the AI sector in his communication with shareholders. This transformation is further evidenced by the company's forward-looking statements, including a Q1 2025 revenue guidance of $858 million to $862 million, which anticipates a year-over-year growth of 35%-36%. Additionally, Palantir estimates an adjusted income from operations to range between $354 million and $358 million for the first quarter of 2025.