Palantir Stock Is Soaring Tuesday: What's Going On?

Palantir Technologies Inc PLTR shares are trading higher Tuesday after the company reported better-than-expected financial results. Multiple analysts upgraded the stock and lifted price targets following the print.

What Happened: Palantir’s fourth-quarter revenue increased 20% year-over-year to $608 million, which beat the consensus estimate of $602.41 million, according to Benzinga Pro. The company reported quarterly adjusted earnings of 8 cents per share, which was in line with analyst estimates.

Commercial revenue grew 32% year-over-year, driven by a 70% year-over-year increase in U.S. commercial revenue. Government revenue climbed 11% year-over-year. Palantir's customer count grew 35% year-over-year during the quarter. U.S. commercial customer count increased 55% year-over-year to 221 customers.

“Our results reflect both the strength of our software and the surging demand that we are seeing across industries and sectors for artificial intelligence platforms,” CEO Alex Karp said in a letter to shareholders.

“The demand for large language models from commercial institutions in the United States continues to be unrelenting.”

Palantir expects first-quarter revenue to be between $612 million and $616 million versus estimates of $617.21 million. First-quarter adjusted income from operations is expected to be between $196 million and $200 million.

Full-year 2024 revenue is expected to be between $2.652 billion and $2.668 billion. Full-year adjusted income from operations is expected to be between $834 million and $850 million. The company also guided for GAAP net income in each quarter of 2024.

Analyst Changes:

• Jefferies analyst Brent Thill upgraded Palantir from Underperform to Hold and raised the price target from $13 to $22.

• Citigroup analyst Tyler Radke upgraded Palantir from Sell to Neutral and raised the price target from $10 to $20.

• Raymond James analyst Brian Gesuale maintained Palantir with an Outperform and raised the price target from $22 to $25.

See Also: Palantir Stock Worth 80% More? Wedbush’s Ives Bumps Up Price Target On ‘Off-The-Charts’ Q4 Success From ‘Messi Of AI’

PLTR Price Action: Palantir shares were up 18.9% at $19.89 at the time of publication, according to Benzinga Pro.

Photo: Cory Doctorow from Flickr.