Palantir (PLTR) is set to report its fourth-quarter earnings after the bell on Monday, and Wall Street is expecting another period of blowout results from the AI software firm.
The company’s earnings per share are expected to rise to $0.23 from $0.14 in the year-ago period, while revenue is expected to rise more than 60% to $1.3 billion, according to analyst estimates tracked by Bloomberg.
While Palantir sells its enterprise software to both companies and governments, its sales to U.S. businesses are expected to grow at a faster pace than its other segments, with revenue from commercial U.S. sales projected to grow nearly 124% from last year to $479 million, according to Bloomberg data.
Still, analysts expect revenue from sales to the U.S. government to account for the largest share of Palantir’s revenue – about 40%. Wall Street sees its US government businesses bringing in $522 million in the fourth quarter, up nearly 52% from 2024.
In November, Palantir’s third-quarter results topped analysts’ estimates, but the stock suffered losses as Wall Street questioned the company’s inflated valuation. The recent selloff in software equities has put Palantir shares under pressure as investors are concerned about the possibility of AI displacing established software firms. PLTR shares have fallen more than 10% in the past month, mirroring a broader decline among industry players in the S&P 500 (^GSPC).
William Blair analyst Louis DePalma upgraded Palantir stock to Outperform from Market Perform on Monday, saying the recent selloff makes the company’s valuation — which he notes is still “frothy” — “more reasonable” relative to others in the AI ecosystem.
DePalma said the Trump administration “continues to fully engage with Palantir.” Although the company’s controversial partnership with ICE has been widely criticized, the analyst said Palantir’s government work is likely to be “very strong in the December quarter.”
Palantir shares are set to rise or fall 9% after the company’s report, according to Bloomberg data. The stock rose nearly 3% in late morning trading ahead of Monday’s results.
Laura Bratton is a reporter for Yahoo Finance. Follow her at Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.
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