Shares of Palantir Technologies Inc. soared over 20% after the company announced its Q4 2024 earnings, which vastly exceeded analyst expectations. The big-data analytics firm reported adjusted earnings per share of 14 cents for the quarter ending December 31, 2024, doubling the eight cents reported during the same period last year. Revenue for the quarter reached $827.5 million, reflecting a remarkable 36% year-over-year increase and outperforming the anticipated $778.2 million.
Palantir's impressive financial performance was bolstered by strong growth in its U.S. operations. The company achieved a staggering 52% revenue increase year-over-year, with U.S. commercial revenue up by 64% and government revenue rising 45%. This surge is attributed to closing 129 deals of at least $1 million during the quarter, along with 58 deals of $5 million or more and 32 contracts exceeding $10 million.
A significant highlight from the report noted Palantir's record-setting total contract value (TCV) of $803 million within U.S. commercial agreements, marking a 134% increase year-over-year. By year-end, the remaining deal value for U.S. commercial contracts was approximately $1.79 billion, demonstrating sustained demand for its services, up by 99% from the previous year.
Key deals during the quarter included the renewal of a contract with mining giant Rio Tinto, which aims to utilize Palantir's Foundry and AI Platform for optimizing autonomous train operations. Palantir also extended its partnership with the Army for support of the Army Data Platform Strategy, reflecting continued confidence from governmental customers.
Palantir Management attributed part of this success to deepening engagements with clients such as the Cleveland Clinic, leveraging AI technologies to improve healthcare operations. Corporate advancement was also marked by the security compliance achievement of FedRAMP High Authorization, aiding adoption within government sectors.
For the full fiscal year, Palantir reported adjusted earnings per share of 41 cents, up from 25 cents the previous year on total revenue of $2.866 billion, representing 29% growth. CEO Alex Karp expressed excitement over the results, stating, "Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution. Our early insights surrounding the commoditization of large language models have evolved from theory to fact." This statement highlighted Palantir's strategic focus on data analytics and AI integration.
Looking forward, Palantir's guidance for Q1 2025 anticipates revenue between $858 million and $862 million, surpassing analysts' expectations of $799.4 million. For the full fiscal year 2025, Palantir projects revenues to reach between $3.741 billion and $3.757 billion, considerably higher than the consensus estimate of $3.53 billion, which reflects confidence in sustained growth as AI continues to shape market demands.
Karp's optimism is rooted not only in financial performance but also the foundational strategic investments made within the AI sector, positioning Palantir as a key player amid accelerating demand for large language models and innovative data solutions.
Following the earnings report, Palantir Technologies' stock performance solidified (closing at $83.74) indicating strong investor confidence. Having quintupled its value over the last year, the company exemplifies how leveraging core technologies and algorithms effectively meets market needs, showcasing ample opportunities for future growth.
With the significant financial results and forward guidance, Palantir appears well poised to maintain momentum through 2025, backed by diverse high-value contracts and a growing customer base, reinforcing its stature as a leader within the data analytics industry.