Palantir Technologies Inc PLTR shares are trading higher Tuesday after the company reported better-than-expected financial results for the fourth quarter and issued strong guidance. Several analysts also lifted price targets following the print.
- Q4 Revenue: $827.52 million, versus estimates of $775.91 million
- Q4 EPS: 14 cents, versus estimates of 11 cents
Total revenue grew 36% year-over-year, driven by strong U.S. revenue growth of 52% year-over-year. U.S. Commercial revenue increased 64% year-over-year to $214 million and U.S. Government revenue was up 45% year-over-year to $343 million.
Palantir’s customer count grew 43% year-over-year and 13% on a quarter-over-quarter basis. The company said it closed 129 deals worth over $1 million during the quarter and 58 deals worth at least $5 million.
Palantir generated $460 million in cash from operations and $517 million in adjusted free cash flow in the quarter. The company ended the quarter with $5.2 billion of cash, equivalents and short-term U.S. treasury securities.
“We are still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades,” Palantir CEO Alex Karp said in a letter to shareholders.
“This is not an incremental advance or marginal acceleration of our business. This is a new phase. And the momentum we are seeing across sectors, both commercial and government, is unlike anything that has come before.”
Outlook: Palantir expects first-quarter revenue to be in the range of $858 million to $862 million, versus estimates of $799.35 million. The company expects full-year 2025 revenue to be between $3.74 billion and $3.76 billion versus estimates of $3.52 billion.
Palantir also guided for positive GAAP operating income and net income in each quarter of 2025 and said it anticipates full-year adjusted free cash flow between $1.5 billion and $1.7 billion.
“The business we have built has now developed its own internal momentum and strength, its own interior life and forms of untamed organic growth, with the output that we are seeing far surpassing what we are investing,” Karp added.
Analyst Changes:
- Jefferies analyst Brent Thill maintained an Underperform and raised the price target from $28 to $60.
- BofA Securities analyst Mariana Perez Mora maintained a Buy and raised the price target from $90 to $125.
- Morgan Stanley analyst Sanjit Singh upgraded Palantir from Underweight to Equal-Weight and raised the price target from $60 to $95.
- Mizuho analyst Matthew Broome maintained an Underperform and raised the price target from $44 to $80.
- Northland Capital Markets analyst Michael Latimore maintained a Market Perform and raised the price target from $38 to $80.
- Baird analyst William Power maintained a Neutral and raised the price target from $70 to $100.
- Cantor Fitzgerald analyst Thomas Blakey maintained a Neutral and raised the price target from $72 to $98.
PLTR Price Action: Palantir shares were up 22.5% at $102.55 at the time of publication Tuesday, according to Benzinga Pro.
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