Palantir Technologies Soars After Impressive Q4 Earnings

Palantir Technologies Inc (NASDAQ: PLTR) saw its shares rise significantly in early trading on Tuesday following the release of its strong fourth-quarter performance.

The company reported quarterly results during an exhilarating earnings season. Key insights from various analysts highlight the impressive momentum Palantir is experiencing.

Morgan Stanley's Perspective on Palantir Technologies

Analyst Sanjit Singh upgraded Palantir's rating from Underweight to Equal-Weight, increasing the price target from $60 to $95. Singh noted that revenue growth has accelerated for six consecutive quarters, jumping from 30% in Q3 to 36% in Q4. Furthermore, the management forecasts a growth of approximately 35-36% for Q1 and about 31% for the fiscal year 2025, exceeding consensus expectations which hover around mid-20% growth.

Singh emphasized that Palantir is well-poised in the early stages of the AI cycle due to its robust technology platform and elite engineering talent. The fundamentals of the company are showing signs of improvement, which suggests that this growth pattern could be sustainable.

Insights from Northland Capital Partners

Michael Latimore, an analyst at Northland Capital Partners, reaffirmed a Market Perform rating while adjusting the price target to $80. Latimore pointed out that Palantir's quarterly revenue growth reached 36%, and the operating margin expanded to an impressive 45%. The reported revenues of $827.5 million surpassed the consensus estimate of $781.2 million, with earnings per share (EPS) at 14 cents, exceeding forecasts of 11 cents.

Additionally, Latimore noted that management projected first-quarter revenue between $858-$862 million, higher than the consensus target of $799.4 million. They also expect non-GAAP operating income between $354-$358 million, well above the consensus estimate of $298.1 million. He explained that Palantir’s DeepSeek technology, which utilizes a powerful low-cost large language model (LLM), demonstrates the trend that LLMs will become more commoditized as they evolve.

BofA Securities' Take on Palantir Technologies

Mariana Perez Mora from BofA Securities maintained a Buy rating on Palantir while increasing the price target from $90 to $125. She expressed that the company’s full-year results significantly exceeded market expectations, describing 2024 as merely a 'dress rehearsal' for future growth. Mora believes that the market is ripe for an AI-driven technology revolution and views Palantir as a potential leader in this industry.

Cantor Fitzgerald's Analysis on Palantir Technologies

Analyst Thomas Blakey upheld a Neutral rating but raised the price target from $72 to $98, acknowledging Palantir’s robust quarterly performance and updated guidance. Noteworthy was the 52% year-on-year growth in U.S. revenues, with 64% growth in U.S. commercial revenues and a 45% increase in U.S. government revenues. Moreover, the company's customer count surged by 43% from the previous year to 711. Blakey attributes this momentum to the growth of the U.S. market and the effectiveness of Palantir’s AI Platform, which enables users to create AI applications and agents with lower coding effort.

Overall, many analysts agree that Palantir Technologies is embarking on a transformative journey of delivering enterprise software and services across industries and governments.

Market Reaction

At the time of publication on Tuesday, shares of Palantir Technologies had surged by 26%, reaching $105.71.

Palantir, Earnings, Growth