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Shares of software platform company Palantir (PLTR+22.48%) soared close to 27% during Tuesday morning trading.
The company’s stock was up by 23% during pre-market trading after it delivered better-than-expected fourth quarter results. At the market open, Palantir stock was up by 22%.
The company, which builds software for big data analytics companies, reported revenue of $828 million for the fourth quarter — a 36% jump year over year, and a 14% increase from the previous quarter. Wall Street was expecting $775.8 million, according to analysts’ estimates compiled by FactSet (FDS+0.13%).
U.S. revenue grew 52% from the previous year to $558 million, Palantir said — a 12% increase quarter over quarter.
Palantir set first quarter revenue guidance between $858 million and $862 million. Analysts are expecting $852 million quarter ending in March, according to FactSet.
For the full year, U.S. revenue was $1.9 billion — a 38% increase from 2023, according to Palantir, while overall revenue grew 29% to $2.87 billion. In 2025, Palantir expects revenue of between $3.74 billion and $3.76 billion.
“Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution,” Palantir chief executive Alex Karp said in a statement. “Our early insights surrounding the commoditization of large language models have evolved from theory to fact.”
Revenue from the U.S. government grew 45% from the previous year to $343 million in the quarter ended in December, according to Palantir. In 2024, U.S. government revenue grew 30% to $1.2 billion from the previous year.
In August, Palantir and Microsoft (MSFT+0.22%) announced that they were deepening their partnership to provide secure cloud, AI, and analytics capabilities to U.S. defense and intelligence agencies. Through the partnership, agencies will have access to Microsoft’s Azure cloud compute and large language models, or LLMs, including OpenAI’s GPT-4, through its Azure OpenAI Service that will be integrated with Palantir’s AI Platforms (AIP). Palantir’s products will be deployed in Microsoft’s Azure cloud for government, including clouds for top secret use.