Shares of Palantir Technologies Inc (NASDAQ:PLTR) experienced an upward movement on Monday as investors positioned themselves ahead of the company’s upcoming fourth-quarter earnings release. Market participants await detailed results and management commentary to gauge whether Palantir can sustain its recent significant growth trajectory.
According to analyst projections sourced from Benzinga Pro, Palantir is expected to report earnings of approximately 23 cents per share and revenue near $1.33 billion for the fourth quarter. These forecasts, if realized, would represent substantial increases from the corresponding quarter a year prior when earnings were reported at 14 cents per share and revenue stood at $827.52 million.
The firm’s third-quarter results demonstrated impressive momentum, with total revenue climbing 63% year-over-year to reach $1.181 billion. Adjusted operating income was reported at $601 million, reflecting a robust margin of 51%. Additionally, the company’s total contract value hit a record $2.76 billion, showing a 151% year-over-year increase, highlighting a solid pipeline of future business engagements.
Further emphasizing its growth, Palantir posted a Rule of 40 score of 114% last quarter, driven by a 77% expansion in U.S. revenue and a remarkable 121% surge in U.S. commercial revenue. These metrics underscore the company’s accelerating market adoption and operational efficiency.
Looking forward, Palantir’s management provided guidance suggesting fourth-quarter revenue will fall in the range of $1.327 to $1.331 billion, alongside an anticipated adjusted operating income between $695 million and $699 million. For the full calendar year 2025, the company has elevated its revenue forecast to between $4.396 billion and $4.400 billion, projecting continued robust expansion.
Alex Karp, Palantir’s co-founder and CEO, noted the significance of the expected growth stating, “We are yet again announcing the highest sequential quarterly revenue growth guide in our company’s history, representing 61% year-over-year growth.” This statement reflects management’s confidence in its sustained market momentum.
Investor interest has been further buoyed by recent analyst activity. William Blair, a prominent investment research firm, upgraded Palantir’s rating to Outperform from Market Perform and assigned a $200 price target, implying an approximate 36% upside from current share prices, according to CNBC reporting.
William Blair analyst Louie DiPalma attributed this positive outlook to the stock’s recent correction. Despite a 29% decline from its November peak, Palantir's shares have realized a 78% increase over the past 12 months. DiPalma remarked that although the company’s valuation remains elevated, it is comparatively attractive when benchmarked against recent venture funding rounds in the artificial intelligence sector.
Highlighting Palantir’s positioning, DiPalma described the company as a key component within the AI supply chain and deemed the recent share price weakness an opportune entry point for investors. He referenced expanding software adoption from both the Trump administration and various enterprise clients as factors contributing to an “astounding” performance in the September quarter. DiPalma also forecasted a “very strong” outcome for the December quarter.
Looking further ahead, the analyst projects an improvement in Palantir’s operating margin from its current 50% to 65% over the next five years, coupled with free cash flow generation exceeding $7 billion by 2030. However, DiPalma cautioned that post-earnings volatility is likely, advising market participants to prepare for fluctuations following the report.
At the time of publication on Monday, Palantir’s stock price was up 2.18%, trading at $149.78 per share, reflecting positive sentiment ahead of the earnings announcement scheduled for after market close.