Palantir Soars 7% as Wall Street Applauds Strong Q4 Earnings Report

TLDR

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Palantir’s stock rose by 7.04% after the company released its Q4 earnings, surpassing expectations.
The company reported a 70% year-over-year revenue growth, exceeding Wall Street’s forecast of 62%.
Palantir’s operating margins reached 57%, beating expectations and contributing to a strong profitability score.
The company secured $4.26 billion in bookings for Q4, marking a 138% increase compared to 2024.
Much of Palantir’s bookings growth came from large, multi-year deals for its AI platform, AIP.

Palantir’s stock price rose by 7.04% to $158.17 after the company released its Q4 earnings, shaking off months of sluggish performance. Wall Street analysts reacted enthusiastically, highlighting Palantir’s fast revenue growth and impressive profit margins. The company’s Q4 results exceeded expectations, with analysts praising its progress in securing large, multi-year contracts.

Palantir Technologies Inc., PLTR

Palantir Reports 70% YoY Revenue Growth

Palantir experienced its fastest revenue growth since becoming a public company. Revenue for Q4 surged by 70% year-over-year, surpassing Wall Street’s expected growth of 62%. Morgan Stanley pointed out that the company’s revenue acceleration from 63% in Q3 to 70% in Q4 was impressive, beating analyst estimates by a wide margin.

Citigroup also praised Palantir’s ability to turn its revenue into profits. Operating margins reached 57%, well above expectations, and free cash flow margins saw a 9-point improvement. Citigroup analysts wrote, “Operating margins were an impressive 57%, beating guidance by 456 bps, contributing to a rule of 40 score of 127%.” These strong results highlight the company’s growing profitability.

Record Bookings and AIP Success

Palantir reported $4.26 billion in bookings for Q4, a 138% increase from the same period in 2024. This surge in bookings reflects the company’s success in selling its AI platform, AIP, to U.S. corporations. RBC Capital noted that much of the growth in bookings was driven by large, multi-year AIP deals.

The company closed 180 deals worth at least $1 million, with 61 of them exceeding $10 million. Additionally, Palantir’s U.S. Commercial bookings grew 67%, reaching $1.34 billion in Q4. The company’s focus on long-term contracts boosted total contract value but raised concerns about visibility into normalized growth. Despite these challenges, analysts remain optimistic about Palantir’s future prospects.

Wall Street’s Positive Outlook

Wall Street analysts have largely expressed confidence in Palantir’s strong performance, with many upgrading their price targets for the company. Palantir’s continued ability to generate significant cash flow, coupled with its growing AI business, has impressed analysts across the board. Despite recent fluctuations in stock price, analysts expect the company to maintain its upward momentum.

While the stock’s increase on Tuesday marks a positive turn, Palantir remains 25% below its all-time high reached in November 2023. The company’s future performance will depend on maintaining its growth trajectory and continuing to secure high-value contracts.

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