Palantir stock surges 22% after earnings: analysts raise price targets

Palantir Technologies Inc. saw its shares jump as much as 22% in extended trading on Monday after the company reported fourth-quarter earnings and revenue that surpassed analysts’ expectations.

The strong results, coupled with an optimistic outlook for the coming quarters, reinforced investor confidence in the company’s expanding role in artificial intelligence and defense technology.

Palantir’s shares have been on a tear over the past year, with the stock soaring 340% in 2024.

The company’s inclusion in both the S&P 500 and Nasdaq 100 has further bolstered its standing among major technology firms.

Palantir stock: earnings report

The company’s earnings and revenue exceeded Wall Street forecasts compiled by LSEG.

Palantir reported an adjusted earnings per share (EPS) of 14 cents, outperforming the expected 11 cents. Revenue came in at $828 million, much higher than the consensus estimate of around $776 million.

Revenue increased 36% in the quarter from $608.4 million a year earlier. 

In addition to the strong fourth-quarter performance, Palantir raised its revenue outlook for the first quarter of 2025.

The company now expects revenue to be between $858 million and $862 million, well above the consensus estimate of $799 million.

Adjusted income from operations of $373 million, representing a 45% margin

For the full year, Palantir forecasts sales of $3.74 billion to $3.76 billion, exceeding analysts' average projection of $3.52 billion.

Palantir’s growth has been fueled by increased adoption of its artificial intelligence-powered software, particularly among commercial and government clients.

CEO Alex Karp emphasized the company’s strong position in the AI industry, stating that Palantir’s early understanding of large language models has transitioned from theory to reality.

Revenue from Palantir’s US commercial segment rose 64% year over year to $214 million, while its US government business grew 45% to $343 million.

Looking ahead, Palantir expects US commercial revenue to expand at least 54% in 2025, reaching approximately $1.08 billion.

Palantir stock target price raised after earnings

BofA Securities analyst Mariana Perez Mora raised the price target on Palantir Technologies to $90 from $75, maintaining a "buy" rating.

Mora expects Palantir to grow 27% year-over-year in 2025, exceeding the Street consensus by 2 to 3 percentage points. She also forecasts annualized growth of 30% in 2026 and 2027, ahead of the consensus 20% estimate.

DA Davidson also raised its price target on Palantir to $105 from $47 while keeping a "neutral" rating. Analysts noted that Palantir’s latest earnings report beat revenue expectations by about $59 million for the quarter.

Wedbush Securities Managing Director Dan Ives, in an interview with CNBC, suggested that the "Messi of AI" Palantir could become “the next Oracle” and potentially reach a trillion-dollar market cap in the coming years.