Palantir Technologies reported record fourth-quarter earnings and revenue that greatly exceeded analyst expectations. The company’s adjusted earnings per share of $0.14 and revenue of $828 million beat consensus estimates by 26% and 7%, respectively.
Great to be on @bsurveillance with @FerroTV @lisaabramowicz1 discussing China tariffs, tech stocks, and the AI Revolution with Palantir’s quarter “one for the ages” @BloombergTV @business ?????♟️?https://t.co/xAPSfOnRPK pic.twitter.com/wEugdaaUu0
— Dan Ives (@DivesTech) February 4, 2025
Shares of Palantir jumped as much as 28% shortly after the earnings report, reaching an all-time high of $106.91. This surge pushed Palantir’s market capitalization to $240 billion, making it more valuable than American Express, McDonald’s, and Disney.
Palantir is playing chess while others play checkers in the AI Revolution. Raising price target to $120. The bears will continue to be negative on valuation…while we believe Palantir is the next Oracle or Salesforce ????♟️
— Dan Ives (@DivesTech) February 4, 2025
Palantir’s CEO, Alexander Karp, attributed the company’s success to its “position at the center of the AI revolution.” The firm provides AI-enabled data analytics insights to customers like Amazon and the Department of Defense. Government contracts accounted for 55% of Palantir’s revenue in 2024.
The company’s 2025 guidance calls for about 30% growth in both sales and adjusted free cash flow.
"Some people get their heads cut off" – you can see that the CEO of Palantir studied with Habermas just by how gentle he sounds on an earnings call https://t.co/RPfwwBHi4o pic.twitter.com/jZiIPsnnXf
— Evgeny Morozov (evgenymorozov.bsky.social) (@evgenymorozov) February 4, 2025
Palantir surpasses earnings expectations
Palantir’s rise has been meteoric. Its stock is now more than ten times its value from two years ago.
It was the S&P 500’s best-performing stock of 2024 and has gained 40% in 2025. However, some analysts caution that Palantir’s valuation may be unsustainable. The company’s price-to-sales ratio of 70 is more than 20 times the S&P average.
Deutsche Bank analyst Brad Zelnick, who has a sell rating on the stock, said, “History suggests [this] is nearly impossible to grow into, especially at this scale.”
Despite these concerns, Karp remains optimistic about Palantir’s future. “We’re doing it. We’re doing it. And I’m sure you’re enjoying this as much as I am,” he said during the earnings call.
Photo by Mikhail Nilov
