Palantir Technologies Inc (NASDAQ:PLTR) shares are moving higher on Monday ahead of the company's fourth‑quarter earnings report. Here's a look at what to expect.
Palantir’s Q4 Earnings Preview
Palantir will release its fourth-quarter results after the market closes Monday. Analysts are looking for earnings of 23 cents per share and revenue of about $1.33 billion, according to Benzinga Pro. That would mark a sharp jump from the same quarter last year, when the company posted earnings of 14 cents per share on revenue of $827.52 million.
Last quarter, Palantir delivered a Rule of 40 score of 114%, with U.S. revenue up 77% year‑over‑year and U.S. commercial revenue soaring 121%.
Overall revenue climbed 63% year‑over‑year to $1.181 billion in its third-quarter, while adjusted operating income hit $601 million for a 51% margin. Palantir also closed a record $2.76 billion in total contract value, up 151% from a year ago.
For the fourth-quarter, the company guided revenue to a range of $1.327 billion to $1.331 billion and projected adjusted operating income between $695 million and $699 million. For full‑year 2025, Palantir raised its revenue outlook to between $4.396 billion and $4.400 billion.
“We are yet again announcing the highest sequential quarterly revenue growth guide in our company’s history, representing 61% year-over-year growth,” Alex Karp, co-Founder and CEO of Palantir, said last quarter
William Blair Sees A Buying Opportunity
Ahead of the earnings release, William Blair upgraded Palantir to Outperform from Market Perform and set a $200 price target, suggesting roughly 36% upside from current levels, CNBC reported.
Analyst Louie DiPalma said the upgrade comes after a sharp pullback in the stock. Shares have dropped 29% since hitting a record high in November, though they're still up 78% over the past year.
While Palantir's valuation is still elevated, “it appears more reasonable relative to recent venture rounds for companies tied to the AI ecosystem," DiPalma wrote. "In our view, the recent selloff creates a buying opportunity for Palantir as a leader in the AI supply chain."
With both the Trump administration and enterprise customers expanding their use of the company's software, DiPalma said Palantir delivered an "astounding" September quarter and anticipates a "very strong" December quarter as well.
The analyst also expects the stock to react positively after earnings, though he warned the move "will surely be volatile." DiPalma projects Palantir's operating margin to climb from 50% to 65% over the next five years and believes the company could generate at least $7 billion in free cash flow by 2030.
Palantir will report fourth-quarter results following the close on Monday.
PLTR Price Action: Palantir shares were up 2.18% at $149.78 at the time of publication on Monday, according to Benzinga Pro.
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