Palantir shares surge after strong Q4 earnings beat

Shares of Palantir surged 12% in premarket trading on Tuesday after the company reported fourth-quarter earnings and revenue that exceeded Wall Street expectations, supported by strong demand from the Trump administration and U.S. businesses.

Palantir said revenue jumped 70% year over year to $1.4 billion, topping the $1.3 billion forecast by analysts surveyed by Bloomberg, News.Az reports. 

Adjusted earnings per share rose to $0.25 from $0.14 a year earlier, beating expectations of $0.23.

The company also issued upbeat guidance. First-quarter revenue is projected at $1.5 billion, well above the $1.3 billion analysts had anticipated. Palantir’s full-year revenue outlook of about $7.2 billion also exceeded the consensus estimate of $6.3 billion.

The strong fourth-quarter performance was driven largely by domestic sales. U.S. commercial revenue surged 137% to $507 million, surpassing the $479 million analysts had projected. U.S. government revenue climbed 66% to $570 million, above estimates of $522 million for the segment.

Despite the premarket rally, Palantir shares have faced recent pressure amid a broader sell-off in software stocks and concerns over the company’s high valuation. The stock is down roughly 12% over the past month, in line with declines among peers in the S&P 500, as investors weigh the potential impact of artificial intelligence on established software companies.

News.Az 

By Nijat Babayev