Palantir Stock Rises 22% After Strong Q4, AI Demand Boosts Outlook

Palantir Technologies reported strong fourth-quarter results, with revenue of $828 million and adjusted earnings per share of 14 cents, exceeding analyst expectations. The company's shares surged 22% as it provided an optimistic sales forecast for 2025, anticipating revenues between $3.74 billion and $3.76 billion, significantly above the $3.52 billion expected by analysts. Palantir's U.S. commercial revenue grew an impressive 64% year-over-year, highlighting the company's successful pivot towards commercial clients amid rising demand for AI technology. CEO Alex Karp noted that the company has been preparing for growth driven by AI for over two decades. Additionally, Palantir warned clients against utilizing the DeepSeek AI model from a Chinese startup, citing national security concerns. The company aims to reduce its reliance on government contracts, projecting a continued increase in revenues from commercial sectors.