Palantir Technologies (PLTR) Stock Soars 22.86% on Explosive Q4 Growth and Bullish Outlook

Shares of Palantir Technologies Inc. (NASDAQ: PLTR) skyrocketed 22.86% to $102.88 in pre-market trading on Tuesday after the company delivered a stellar Q4 earnings report, surpassing Wall Street expectations. The data analytics and artificial intelligence (AI) powerhouse showcased exceptional growth, driven by surging demand in both commercial and government sectors.

Palantir’s Impressive Q4 Performance

Palantir reported a 36% year-over-year (YoY) revenue growth in Q4 2024, marking its sixth consecutive quarter of accelerating expansion. The primary catalysts behind this surge include a 64% increase in U.S. commercial revenue and a 45% rise in U.S. government contracts. These figures underscore the company’s strengthening foothold in AI-powered enterprise solutions and defense applications.

For Q1 2025, Palantir expects revenue growth in the 35%-36% range, while full-year revenue is projected to rise by 31%. These forecasts significantly exceed analyst expectations, which had anticipated mid-20% growth.

Wall Street’s Reaction: Bullish Upgrades and Price Target Increases

Palantir’s strong earnings report and optimistic guidance prompted multiple Wall Street analysts to revise their ratings and price targets:

• Bank of America reiterated its Buy rating and raised the price target from $90 to $125, citing Palantir’s dominant position in AI and operational data management.
• Morgan Stanley upgraded the stock from Underweight to Equal-weight, increasing its price target from $60 to $95, acknowledging its accelerating fundamentals.
• Jefferies, despite maintaining an Underperform rating, lifted its price target from $28 to $60, recognizing the company’s strong performance but expressing caution regarding valuation sustainability.

AI Leadership and Market Expansion Fuel Optimism

Palantir’s growth trajectory is largely attributed to its cutting-edge AI-driven software, which has gained significant traction in commercial enterprises and government agencies. With increasing adoption of AI analytics, cybersecurity, and defense solutions, Palantir is emerging as a leader in the AI revolution.

As Palantir continues to expand its AI capabilities and secure major contracts, analysts foresee sustained momentum through 2025 and beyond. Investors are keenly watching how the company leverages its AI-driven innovations to capture an even greater share of the rapidly evolving market.

Stay tuned for more updates as Palantir reshapes the future of AI and data intelligence!