Palantir anticipates a 'robust' fourth-quarter earnings report after recent stock decline

Palantir Anticipates Strong Fourth Quarter Earnings

Palantir (PLTR) is scheduled to release its fourth quarter financial results after markets close on Monday. Analysts are forecasting another impressive performance from the AI-driven software company.

According to Bloomberg's analyst consensus, Palantir’s earnings per share are projected to climb to $0.23, up from $0.14 a year earlier. Revenue is also expected to jump by over 60%, reaching approximately $1.3 billion.

While Palantir provides software solutions to both corporate and government clients, its US commercial division is anticipated to be the fastest-growing segment. Revenue from American business customers is estimated to nearly double, increasing by 124% year-over-year to $479 million, based on Bloomberg data.

Despite this rapid growth in commercial sales, revenue from US government contracts is still expected to make up the largest portion of Palantir’s income—about 40%. Wall Street predicts that government-related revenue will total $522 million for the quarter, which would represent a 52% increase from 2024.

Back in November, Palantir’s third quarter earnings surpassed expectations, but the company’s stock price dropped as investors raised concerns about its high valuation. Recent declines in software stocks have further pressured Palantir shares, as worries mount over AI’s potential to disrupt established software providers. Over the last month, PLTR shares have fallen more than 10%, mirroring a broader downturn among S&P 500 technology stocks.

On Monday, William Blair analyst Louie DiPalma upgraded Palantir’s rating to Outperform from Market Perform. He noted that although the company’s valuation remains “frothy,” the recent pullback has made it more attractive compared to other AI-focused firms.

DiPalma also commented that the Trump administration continues to heavily support Palantir. Despite ongoing controversy surrounding Palantir’s collaboration with ICE, which has faced significant criticism, he believes the company’s government contracts will contribute to a robust December quarter.

Bloomberg data suggests Palantir’s stock could fluctuate by about 9% after the earnings announcement. Ahead of the report, shares were up nearly 3% in late morning trading on Monday.

Palantir Leadership at Davos

Palantir CEO Alex Karp addressed attendees at the World Economic Forum in Davos, Switzerland, on January 20. (AP Photo/Markus Schreiber)