U.S. data analysis corporations Palantir, riding a surge in demand for artificial intelligence (AI), delivered fourth-quarter results last year that far exceeded market expectations.
Palantir said in a filing on the 2nd (local time) that fourth-quarter revenue last year rose 70% from a year earlier to $14.07 billion, about 2.05 trillion won. That was well above the $13.3 billion forecast compiled by market research firm LSEG.
The growth was led by the U.S. commercial institutional sector. U.S. commercial institutional sector revenue jumped 137% from a year earlier to $5.07 billion, almost matching U.S. government institutional sector revenue of $5.7 billion, which rose 70% over the same period. Total U.S. revenue was $10.76 billion, accounting for more than three-quarters of total revenue.
On an annual basis, Palantir's revenue last year was $44.75 billion, about 6.5 trillion won. Of that, U.S. revenue, combining $18.55 billion from the government institutional sector and $14.65 billion from the commercial institutional sector, totaled $33.2 billion, or 74.2% of the total.
Fourth-quarter adjusted earnings per share (EPS) were 25 cents, beating the market forecast of 23 cents, and full-year EPS was 75 cents.
Palantir also projected that its steep growth will continue this year. The company guided first-quarter revenue this year to $15.32 billion–$15.36 billion and full-year revenue to $71.82 billion–$71.98 billion. That far exceeds the market consensus compiled by FactSet of $13.2 billion for the first quarter and $62.2 billion for the year.
Chief Executive Officer Alex Karp said in a letter to shareholders, "These financial results exceeded even our most ambitious expectations," adding, "a cosmic reward for those who have embraced our way of working, or at least not rejected it outright."
Karp pushed back against criticism over Palantir's AI tools being used in immigration enforcement by agencies such as Immigration and Customs Enforcement (ICE), saying, "That means more Palantir AI is needed." He argued the company's software will not only reshape U.S. national security but also strengthen the ability to protect society from government overreach.
He also stressed that Palantir's AI software is designed to comply with the Fourth Amendment to the U.S. Constitution, which prohibits unlawful searches and seizures. Earlier, Silicon Valley tech workers had urged large tech companies such as Palantir to oppose unlawful immigration enforcement and to withdraw their contracts with ICE.
Palantir shares rose only 0.8% in regular session trading that day, but surged more than 7% in after-hours trading following the earnings release, changing hands around $159 as of 5 p.m. Eastern.