Palantir Technologies shares jumped Tuesday after the defense and data analytics firm reported fourth-quarter results that exceeded Wall Street expectations, driven by accelerating demand from government customers and continued strength in its U.S. commercial business.
The stock rose about 7% in early trading after Palantir reported fourth-quarter revenue of $1.41 billion, topping analyst forecasts of roughly $1.33 billion. The company posted adjusted earnings per share of 25 cents, beating the consensus estimate of 23 cents.
The results follow a volatile stretch for the company’s shares as investors have debated valuations across artificial intelligence-linked software companies. Palantir has been closely watched as one of the more prominent names positioned at the intersection of AI, defense contracting and enterprise analytics, with investors weighing whether the surge in generative AI adoption will translate into sustained long-term revenue growth.
The company’s domestic performance was a key driver of the upbeat reaction. Palantir said U.S. commercial revenue surged 137% to $507 million, exceeding analyst expectations of about $479 million. U.S. government revenue climbed 66% to $570 million, also topping forecasts near $522 million.
Chief Executive Alex Karp highlighted what he described as increasing urgency among customers to deploy AI capabilities into real-world operations. On the earnings call, he argued Palantir is positioned to benefit as government agencies and businesses seek to integrate AI into decision-making and logistics at scale.
Investors also welcomed Palantir’s guidance. The company projected first-quarter revenue of about $1.5 billion, above analyst estimates near $1.3 billion, and forecast full-year revenue of roughly $7.2 billion, topping expectations around $6.3 billion.
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Palantir’s growing footprint in defense and national security work remains central to its business narrative. The company has long maintained that its software platforms can help government agencies process and act on large volumes of data more quickly, particularly in environments where speed and coordination are critical. Palantir executives have also noted that the company is limited in what it can disclose publicly about certain defense and intelligence programs.
At the same time, Palantir continues to face scrutiny over its government ties. The company’s work supporting Immigration and Customs Enforcement has drawn criticism from civil liberties advocates and activists who argue the technology is used in ways that enable aggressive enforcement actions. Media coverage has highlighted the controversy surrounding Palantir’s contracts and the broader debate over the role of technology firms in immigration enforcement and other sensitive government operations.
Despite the strong quarter and upbeat outlook, analysts say Palantir still faces the broader question confronting many AI-linked software companies: whether growth can remain elevated as competition intensifies and as customers weigh costs for new AI deployments. In recent interviews, Mr. Karp has acknowledged that disruption remains a constant risk in the technology sector, even for companies with strong momentum.
This article is written with the assistance of generative artificial intelligence based solely on Washington Times original reporting and wire services. For more information, please read our AI policy or contact Steve Fink, Director of Artificial Intelligence, at sfink@washingtontimes.com
The Washington Times AI Ethics Newsroom Committee can be reached at aispotlight@washingtontimes.com.
