Palantir's New Earnings Report Shows Growing Demand For AI Networking

Palantir surges over 23% on outlook fueled by ‘untamed’ AI demand

Best known for its national security work and recent advancements in AI, Palantir’s stock surged 340% in 2024. Fueled by investor excitement in AI, both commercial and government customers increasingly adopted Palantir’s data analysis software.

In Q4, revenue soared 36% to $827.5 million, surpassing analysts’ expectations of $775.9 million. Excluding certain items, profit stood at 14 cents per share, beating the 11 cents predicted by analysts. Shares gained over 23% in extended trading, closing at a record $83.74 in New York. Palantir’s deepening ties with the US Defense Department drove US government sales up 45% to $343 million, while US commercial revenue jumped 64% to $214 million.

Palantir CTO Shyam Sankar emphasized the need for government accountability and predicted a 54% rise in US commercial sales in 2025, reaching $1.08 billion. CEO Alex Karp highlighted the company's commitment to disruption and innovation. Palantir’s technology is now integral to all US military branches and is utilized by allies in Ukraine and Israel. The company has expanded deals, including one with the US Army worth up to $619 million through 2028.

Partnering with tech companies like Anduril Industries and AI startup Anthropic, Palantir aims to lead a software-driven defense ecosystem.

Following the election of President Donald Trump, investors showed enthusiasm for Palantir stock due to the company’s promise to bolster US defense and manufacturing. Sankar published a blueprint for the resurrection of the American industrial base and testified before Congress in favor of defense innovation and acquisition reform.

Sankar stressed the importance of winning the AI race and revitalizing America’s industrial base, while Karp highlighted the role of organized violence in the rise of the West.

Palantir’s projected US commercial sales in 2025 are expected to rise by about 54% to $1.08 billion, marking a significant milestone in the company's growth trajectory.