Palantir Technologies Inc. (PLTR, Financials) reported robust fourth-quarter earnings, driven by accelerating demand for its AI solutions and strong performance in the U.S. market.
With a 36% year-over-year gain beyond expert projections of $781.2 million, the business reported $828 million in sales, with adjusted profits per share of $0.14, above the $0.11 projection.
CEO Alex Karp highlighted notable expansion in the American market, as government income rose 45% year over year and commercial income jumped 54%. Up 56% year over year, the business landed $1.8 billion in total contract value during the quarterincluding a $67 million agreement with a U.S. pharmacy and a $40 million contract increase with a telecom customer.
With an adjusted operating margin of 45% and a Rule of 40 score of 81, CFO Dave Glazer underlined record profitability, thereby showing Palantir’s effectiveness in combining development with profitability. With a full-year total of $1.25 billion, adjusted free cash flow for the quarter came out to be $517 million.
Looking forward, Palantir forecasts a 31% increase in full-year 2025 revenue, ranging from $3.741 billion to $3.757 billion. Revenue in the first quarter is projected to fall between $858 million and $862 million. Growing at least 54% year over year, the business projects U.S. commercial income to reach $1.079 billion.
Analysts reacted favorably, pointing to record contract bookings and the quick adoption cycles of artificial intelligence as the main forces behind growth. Although European growth is still slow at 4% year over year, Palantir is emphasizing U.S. development and government alliances to maintain its current direction of progress.
As companies and governments embrace AI-driven solutions, Karp voiced confidence in Palantir’s position as a pillar artificial intelligence firm over the next three to five years.
This article first appeared on GuruFocus.
