We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Buy New AI Poster Child Palantir After Excellent Q4 Earnings
Palantir, the artificial intelligence (AI)-powered software platform and data analytics firm, reported robust earnings results for fourth-quarter 2024. The company’s earnings results can be divided into three parts: strong business execution in the fourth quarter, an impressive guidance for 2025 and a tactical shift in revenues from government to commercial businesses.
Palantir Technologies builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally. The U.S. defense sector is the major customer of PLTR.
Strong Fourth-Quarter Results
Palantir Technologies came up with quarterly earnings of $0.14 per share, beating the Zacks Consensus Estimate of $0.11. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.
PLTR posted quarterly revenues of $827.52 million, surpassing the Zacks Consensus Estimate by 6.44%. This compares to year-ago revenues of $608.35 million. U.S. commercial revenue grew 64% from a year ago to $214 million, while U.S. government revenues rose 45% year over year to $343 million.
Total customer count increased 43%, in which, U.S. commercial customer count jumped 73%. U.S. commercial total contract value (TCV) deals closed skyrocketed 134% and U.S. commercial remaining deal value soared 99% to $1.8 billion.
Solid Guidance
Palantir Technologies forecast first-quarter 2025 revenues to range from $858 million to $862 million. Its mid-point of $860 million is well above the current Zacks Consensus Estimate of $798 million. The Zacks Consensus Estimate for first-quarter EPS is currently pegged at $0.11, indicating an improvement of 37.5% year over year.
PLTR expects 2025 total revenues in the range of $3.741 to $3.757 billion. Its mid-point of $3.75 million exceeds the current Zacks Consensus Estimate of $3.54 billion. U.S. Commercial revenues are expected to climb 54% year over year, surpassing $1.08 billion. The Zacks Consensus Estimate for 2025 EPS is currently pegged at $0.48, reflecting an improvement of 17.1% year over year.
Tactical Shift in Revenues
Lately, Palantir Technologies’ commercial business has gathered pace besides its traditional government contracts. This is primarily due to PLTR’s aggressive venture in the AI space. In 2023, PLTR launched its Artificial Intelligence Platform (AIP), an AI-powered system that helps customers quickly concentrate and analyze data and discover how it can help advance their business goals.
AIP provides unified access to open-source, self-hosted, and commercial large language models that can transform structured and unstructured data into LLM-understandable objects and turn organizations' actions and processes into tools for humans and LLM-driven agents. This shift in revenue structure has enabled the company to no longer depend on government defense agencies.
Consequently, on Feb 4, the stock price of PLTR jumped 24% to close at $103.83 after touching an all-time high of $106.91.
More Upside Left
PLTR’s data analytics software is utilized by government agencies for intelligence gathering, counterterrorism and military purposes. This tool, in association with generative AI applications, is expanding significantly in the health care, energy and manufacturing sectors.
In fourth-quarter 2024, Palantir Technologies inked 129 deals worth at least $1 million. Of those, 58 were worth at least $5 million, and 32 were worth at least $10 million. PLTR’s remaining performance obligation (RPO) -- sales not yet booked as revenues -- climbed 40% year over year to $1.73 billion.
The generative AI market has huge potential. Consulting firm McKinsey & Company estimated this market size to reach $2.6 to $4.4 trillion in the coming decades. Bloomberg Intelligence estimates that generative AI spending will increase from $67 billion in 2023 to $1.3 trillion by 2032.
After fourth-quarter earnings results, global AI-application behemoths like Meta Platforms Inc., Microsoft Corp. and Alphabet Inc. reaffirmed their massive expenditures on gen AI.
Investment Thesis
In the past year, the stock price has soared more than 500%. Despite its overstretched valuation, the stock has significant potential for the long term. The long-term (3-5 years) EPS growth projection is 36.1%, highly above the S&P 500’s growth rate of 12.4%. Therefore, every meaningful (3-5%) dip in stock price should be an attractive entry point.
Palantir Technologies currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Its favorable Zacks Rank along with robust fourth-quarter earnings results, should also drive its stock price in the near future.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Investment Ideas feature highlights: Palantir, Meta Platforms, Microsoft and Alphabet
For Immediate Release
Chicago, IL – February 6, 2025 – Today, Zacks Investment Ideas feature highlights Palantir (PLTR - Free Report) , Meta Platforms Inc. (META - Free Report) , Microsoft Corp. (MSFT - Free Report) and Alphabet Inc. (GOOGL - Free Report) .
Buy New AI Poster Child Palantir After Excellent Q4 Earnings
Palantir, the artificial intelligence (AI)-powered software platform and data analytics firm, reported robust earnings results for fourth-quarter 2024. The company’s earnings results can be divided into three parts: strong business execution in the fourth quarter, an impressive guidance for 2025 and a tactical shift in revenues from government to commercial businesses.
Palantir Technologies builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally. The U.S. defense sector is the major customer of PLTR.
Strong Fourth-Quarter Results
Palantir Technologies came up with quarterly earnings of $0.14 per share, beating the Zacks Consensus Estimate of $0.11. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.
PLTR posted quarterly revenues of $827.52 million, surpassing the Zacks Consensus Estimate by 6.44%. This compares to year-ago revenues of $608.35 million. U.S. commercial revenue grew 64% from a year ago to $214 million, while U.S. government revenues rose 45% year over year to $343 million.
Total customer count increased 43%, in which, U.S. commercial customer count jumped 73%. U.S. commercial total contract value (TCV) deals closed skyrocketed 134% and U.S. commercial remaining deal value soared 99% to $1.8 billion.
Solid Guidance
Palantir Technologies forecast first-quarter 2025 revenues to range from $858 million to $862 million. Its mid-point of $860 million is well above the current Zacks Consensus Estimate of $798 million. The Zacks Consensus Estimate for first-quarter EPS is currently pegged at $0.11, indicating an improvement of 37.5% year over year.
PLTR expects 2025 total revenues in the range of $3.741 to $3.757 billion. Its mid-point of $3.75 million exceeds the current Zacks Consensus Estimate of $3.54 billion. U.S. Commercial revenues are expected to climb 54% year over year, surpassing $1.08 billion. The Zacks Consensus Estimate for 2025 EPS is currently pegged at $0.48, reflecting an improvement of 17.1% year over year.
Tactical Shift in Revenues
Lately, Palantir Technologies’ commercial business has gathered pace besides its traditional government contracts. This is primarily due to PLTR’s aggressive venture in the AI space. In 2023, PLTR launched its Artificial Intelligence Platform (AIP), an AI-powered system that helps customers quickly concentrate and analyze data and discover how it can help advance their business goals.
AIP provides unified access to open-source, self-hosted, and commercial large language models that can transform structured and unstructured data into LLM-understandable objects and turn organizations' actions and processes into tools for humans and LLM-driven agents. This shift in revenue structure has enabled the company to no longer depend on government defense agencies.
Consequently, on Feb 4, the stock price of PLTR jumped 24% to close at $103.83 after touching an all-time high of $106.91.
More Upside Left
PLTR’s data analytics software is utilized by government agencies for intelligence gathering, counterterrorism and military purposes. This tool, in association with generative AI applications, is expanding significantly in the health care, energy and manufacturing sectors.
In fourth-quarter 2024, Palantir Technologies inked 129 deals worth at least $1 million. Of those, 58 were worth at least $5 million, and 32 were worth at least $10 million. PLTR’s remaining performance obligation (RPO) -- sales not yet booked as revenues -- climbed 40% year over year to $1.73 billion.
The generative AI market has huge potential. Consulting firm McKinsey & Company estimated this market size to reach $2.6 to $4.4 trillion in the coming decades. Bloomberg Intelligence estimates that generative AI spending will increase from $67 billion in 2023 to $1.3 trillion by 2032.
After fourth-quarter earnings results, global AI-application behemoths like Meta Platforms Inc., Microsoft Corp. and Alphabet Inc. reaffirmed their massive expenditures on gen AI.
Investment Thesis
In the past year, the stock price has soared more than 500%. Despite its overstretched valuation, the stock has significant potential for the long term. The long-term (3-5 years) EPS growth projection is 36.1%, highly above the S&P 500’s growth rate of 12.4%. Therefore, every meaningful (3-5%) dip in stock price should be an attractive entry point.
Palantir Technologies currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Its favorable Zacks Rank along with robust fourth-quarter earnings results, should also drive its stock price in the near future.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.