(Reuters) -Data analytics firm Palantir forecast first-quarter and annual revenue above Wall Street estimates on Monday, betting on robust demand for its software from companies adopting generative AI, sending its shares up about 12% after the bell.
Businesses pushing to deploy the most sophisticated generative artificial intelligence tech have helped drive sales for Palantir’s AI platform, AIP, which is used to test, debug code and evaluate AI-related scenarios.
The Denver-based company expects fiscal 2025 revenue between $3.74 billion and $3.76 billion, above the average analyst estimate of $3.52 billion, according to data compiled by LSEG.
Revenue is being driven by both new customers and the expansion of those customers with AIP, Palantir’s Chief Revenue Officer Ryan Taylor told Reuters. The company’s customer count grew 43% in the fourth quarter.
Chinese startup DeepSeek’s AI models that it claimed can match or even outperform Western rivals at a fraction of the cost had stirred doubts about the United States’ lead in the technology and the high costs of GenAI development.
Palantir would discourage its clients from using DeepSeek, Taylor said, adding that U.S. government customers would be unable to use the Chinese company’s models.
Co-founded by billionaire Peter Thiel, Palantir derived more than 40% its fourth-quarter sales from the U.S. government but has been working to reduce its dependence on government spending.
Palantir expects revenue derived from companies in the U.S. to grow at least 54% in 2025 to more than $1.80 billion.
The company forecast March-quarter revenue between $858 million and $862 million, compared with estimates of $799.4 million.
Expanded tariffs ordered by U.S. President Donald Trump on Saturday could also help drive demand for Palantir’s analytics services centered around supply-chain and logistics management, Taylor said.
On an adjusted basis, Palantir earned 14 cents per share in the fourth quarter, beating estimates of 11 cents.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shounak Dasgupta)
Palantir Technologies, a leading data analytics company, has forecasted its 2025 revenue to be above estimates, citing the strength of its artificial intelligence capabilities. The company’s shares surged following the announcement, as investors were optimistic about its growth potential in the coming years.
Palantir, known for its data integration and analysis software, has been increasingly focusing on AI technology to enhance its offerings and improve its competitive edge in the market. The company’s AI-driven solutions have been gaining traction among clients across various industries, driving its revenue growth and positioning it for further success in the future.
With the demand for advanced data analytics and AI solutions on the rise, Palantir is well-positioned to capitalize on this trend and continue to expand its market share. The company’s strong forecast for 2025 revenue indicates its confidence in its ability to deliver results and drive sustainable growth in the long term.
Overall, Palantir’s forecasted revenue above estimates underscores the company’s strong position in the AI and data analytics space, and its potential for significant growth in the years to come. Investors are optimistic about the company’s prospects and are closely watching its performance as it continues to innovate and drive value for its clients.
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