The performance of Palantir, a U.S. artificial intelligence (AI)-based data analytics corporation, has drawn attention in the IT industry as it exceeded market expectations significantly. Palantir's revenue for the last quarter surpassed 1 trillion won, leading to a stock price surge of over 20%. Experts expect that as the demand for AI software increases, Palantir's government projects will expand, as well as its private sector business.
According to industry sources on the 5th, Palantir's revenue for the fourth quarter of last year increased by 36% year-on-year to $827.5 million (1.2015 trillion won), surpassing market expectations of $776 million. Earnings per share (EPS) also exceeded expectations at $0.14, compared to the forecast of $0.11. The guidance for this year's performance also surpassed market expectations. Palantir anticipates this year's revenue to be $3.75 billion (5.4333 trillion won), exceeding the market average estimate by 6%. Operating profit is expected to reach $1.56 billion (2.2602 trillion won), which is projected to exceed expectations by 10%.
As Palantir's performance improved, the stock price rose by more than 23% compared to the previous trading day. For the first time, Palantir's share price exceeded $100, reaching as high as $103.90.
The company noted that the reason for the increase in performance is due to the growing demand for AI-based solutions. Palantir is an IT corporation that provides big data analytics and AI-based software. CEO Alex Karp stated, "Uncontrolled organic growth is driving the increase in demand for AI software."
Palantir's main business is divided into the government institutional sector and the private institutional sector. Major U.S. government agencies are using Palantir's software for counter-terrorism, military strategy analysis, and cyber threat detection. Palantir's AI solutions are reportedly used not only by the U.S. military but also by allied countries like Ukraine and Israel. Bloomberg analyzed that "expectations are growing that Palantir will support the strengthening of the U.S. defense industry and manufacturing sector as the Trump administration takes office."
Lim Ji-yong, a researcher at NH Investment & Securities, explained, "The lesson from Palantir's performance is that we are now in an arms race for AI and it suggests that competition for AI development is intensifying," and emphasized the importance of Palantir's long-established track record with the U.S. and allied governments.
The investment industry views that Palantir's private sector business also has significant growth potential. This is possible as the company is securing stability through its government projects while diversifying its operations in the private sector. Revenue from Palantir's private sector grew by 64% compared to the previous year. Private corporations and logistics firms are adopting Palantir solutions to enhance productivity, cut expenses, and minimize supply chain risks. Biotech companies such as Merck and Pfizer are collaborating with Palantir for drug development and clinical data analysis. Palantir has also researched ways to optimize medical services with Cleveland Clinic in the United States.
An industry insider stated, "Palantir is excelling not only in government-targeted projects but also in essential infrastructure areas. Corporations providing high-quality AI software-based solutions will succeed in improving their performance this year."