Palantir Technologies (PLTR, Financial), a prominent U.S. defense tech stock, saw its shares surge 24% in after-hours trading following the release of its fourth-quarter earnings report. The company exceeded analysts' expectations with its full-year revenue forecast.
In the fourth quarter, Palantir reported a 36% year-over-year increase in revenue, reaching $827.5 million, surpassing the anticipated $775.9 million. Adjusted earnings per share stood at 14 cents, above the forecasted 11 cents.
Looking ahead, Palantir expects first-quarter revenue between $858 million and $862 million, topping the analysts' estimate of $799 million. For 2025, the company projects revenue of $3.75 billion and adjusted operating profit of $1.56 billion, both exceeding market expectations.
Palantir's stock closed up 1.52% at $83.74 before the after-hours surge. The company, a key software and tech services provider to U.S. defense agencies, has gained attention for its AI platform. In 2024, its stock soared 340%, driven by investor enthusiasm for AI and increased adoption of its data analytics software by commercial and government clients.
CEO Alex Karp attributed the company's growth to the widespread application of AI technologies. Palantir's U.S. government business revenue grew 45% to $343 million, while commercial revenue increased 64% to $214 million.
Palantir has expanded its contracts with the U.S. Army and Special Operations Command, and is collaborating with AI startup Anthropic. The company sees these moves as the beginning of a new U.S. defense ecosystem led by software companies.
