Palantir Technologies reported impressive fourth-quarter earnings, benefiting significantly from the surge in generative AI following the release of OpenAI's ChatGPT in late 2022. The company posted an earnings per share of 14 cents, adjusted, surpassing the anticipated 11 cents, and generated a revenue of $828 million, exceeding the forecasted $776 million. This robust performance led to a more than 15% increase in Palantir's shares during extended trading on Monday.
The company's momentum is evident across both its commercial and government segments. CEO Alex Karp highlighted this growth, describing it as "unlike anything that has come before." Palantir's U.S. commercial revenue soared 64% from the previous year to $214 million, while U.S. government revenues increased by 45% year over year to $343 million. Overall, Palantir's revenue for the quarter rose by 36% from $608.4 million a year earlier.
Palantir also provided optimistic future guidance, projecting revenues between $858 million and $862 million for the upcoming quarter, ahead of an LSEG estimate of $799 million. For the full year, the company forecasts sales between $3.74 billion and $3.76 billion, surpassing the $3.52 billion average estimate.
CEO Alex Karp acknowledged the rapid advancements in AI technology and Palantir's pivotal role in this transformation.
"Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution," – Alex Karp
However, he also noted the dual nature of technological progress.
"We have to acknowledge that, but that also just means we have to run harder, run faster, have an all-country effort." – Alex Karp
Palantir's steady growth is reflected in its full-year sales, which increased by 29%. The company's inclusion in both the S&P 500 and Nasdaq 100 last year further solidifies its standing in the market. Despite this success, Karp emphasized that Palantir's technology is not inherently good or bad; its impact depends on its application.