Palantir waves on Outlook, driven by ‘Untamed’ AI Inquiry

On By Littum

(Bloomberg) -Palantir Technologies Inc. shares, after giving a full-year revenue forecast that exceeded analysts’ estimates, thanks to what CEO Alex Karp described as “untamed organic growth” in demand for his artificial intelligence software.

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Sales will be around $ 3.75 billion in 2025, the Denver-based company said Monday in a statement. Adjusted operating income will be around $ 1.56 billion. Analysts expected an average revenue of $ 3.54 billion and operating profit of $ 1.37 billion.

Best known for its national security work, and recently its AI platform, Palantir’s share rose 340% by 2024.

Revenue in the fourth quarter sprang 36% to $ 827.5 million compared to analysts’ average estimate of $ 775.9 million. Result, excluding some items, was 14 cents per day. Stock. Analysts are estimated on average 11 cents.

The shares received more than 23% in extended trade after closure to a record $ 83.74 in New York.

As the company elaborates its connection with the US Department of Defense, sales to the US government jumped 45% to $ 343 million. US commercial revenue increased 64% to $ 214 million in the period ending December 31.

On a conference interview after the results, Palantir Chief Technology Officer Shyam Sankar was asked about the potential effects of US President Donald Trump’s efforts to cut the federal government’s budget led by the Elon Musk-Run Department of Government Efficiency.

“Palantir’s real competition is a lack of accountability in government,” Sankar said. “DOGE will bring meritocracy and transparency to the government” and make it work more like the commercial market.

Palantir projected US commercial sales in 2025 will increase approx. 54% to $ 1.08 billion.

Karp, in a letter to shareholders, Palantir said is in “a new phase” and warned against “technical self -satisfaction” from other US companies that do not step up and serve us interests.

“We love disturbance,” Karp said on the call. “Disorder at the end of the day exposes things that do not work that will be up and down. There is a revolution. Some people get their heads cut off. “

The company’s technology is now used across all US military branches and by US allies in Ukraine and Israel. Palantir also recently expanded one of his agreements with the US Army to as much as $ 619 million through 2028 and expanded his AI work with the US Special Operations Command.