Palantir (PLTR) shares climbed 10% early Tuesday following the company’s announcement of fourth-quarter earnings and revenue that surpassed Wall Street expectations. The results were driven by robust demand from both the Trump <a s strong quarterly performance was bolstered by domestic growth. Palantir’s US commercial revenue jumped 137% to $507 million, beating the $479 million forecast, while US government revenue rose 66% to $570 million, surpassing the $522 million estimate for that segment.
The stock had recently faced pressure due to a broader sell-off in software equities and investor concerns regarding the company’s high valuation. Shares have declined roughly 12% over the past month, mirroring a wider downturn among S&P 500 (^GSPC) software firms as investors weigh the risk of AI displacing established industry players.
During an interview with Yahoo Finance’s Josh Lipton ahead of the results, CEO Alex Karp acknowledged that AI could pose a hurdle to software providers.
“In tech, you only have a time horizon of a couple years. You can’t say we will never be disrupted,” he said. “But we made <a
Karp said that “the products and the culture we have are ideally built for the time we are in now” and that Palantir is “a different species of company.”
William Blair analyst Louis DiPalma upgraded <a s valuation "more reasonable." He also highlighted the company's work with the Trump administration — though that relationship, including Palantir's work with ICE, has drawn significant public criticism.
