Remember when your friend said they were “probably going to fail that test” and then showed up with an A+? That’s basically what Palantir (PLTR) just did to Wall Street analysts, except with billions of dollars and way more spreadsheets involved.
Wall Street was bracing for Palantir’s Q4 earnings like that friend who always expects the worst-case scenario. They figured the AI darling would post decent numbers—around $1.33 billion in revenue—but then slow down because, you know, “economic uncertainties” and “maturing markets.” Classic analyst speak for “we’re not sure what’s happening, so let’s be pessimistic.”
Plot twist: Palantir said “hold my energy drink” and delivered $1.41 billion in revenue instead. That’s a 70% jump from last year, which in finance terms is basically doing a backflip when everyone expected you to trip over your shoelaces.
The Commercial Segment Went Absolutely Bonkers
Here’s where it gets really spicy. Palantir’s commercial business—the part that sells to regular companies instead of shadowy government agencies—absolutely exploded. U.S. commercial revenue hit $507 million, up 137% from last year. To put that in perspective, that’s like your side hustle suddenly making more money than your day job, your neighbor’s day job, and your cousin’s day job combined.
The secret sauce? Their AI bootcamps and rapid deployment strategies. Basically, they’re teaching companies how to use AI without making it feel like rocket science. Smart move, considering most executives still think “the cloud” involves actual weather.
Government Contracts: Still Printing Money
While everyone was getting excited about the commercial growth, Palantir’s government business was quietly doing its thing—making bank. U.S. government revenue jumped 66% to $570 million. Apparently, when you’re really good at analyzing data for national security purposes, people keep throwing money at you. Who knew?
The star of the show is their Artificial Intelligence Platform (AIP), which sounds like something from a sci-fi movie but is actually just really good at making sense of messy data. Companies and governments are eating it up because it can handle complex tasks without requiring a PhD in computer science to operate.
The Stock Market Had Feelings
Investors, who had been treating PLTR stock like that friend who always cancels plans (down 17% year-to-date), suddenly remembered why they liked this company in the first place. The stock jumped over 10% in premarket trading, which in stock market terms is basically everyone saying “my bad” at the same time.
Sure, Palantir still trades at premium valuations that make traditional investors nervous—we’re talking 30x forward revenue, which is like paying $30 for a $1 coffee because you really, really believe in that coffee’s potential. But when you’re growing at 70% annually and your profit margins are hitting 57%, maybe that premium isn’t so crazy after all.
The bottom line? Palantir just proved that sometimes the weird kid in class who everyone thought was too intense actually ends up changing the world. And making a lot of money doing it.