Palantir Technologies (NYSE: PLTR) is preparing to release its fourth-quarter 2024 earnings report after the market closes on February 3, 2025. Investors are keeping a close watch on Palantir’s performance, as it led the S&P 500 in 2024 with a remarkable 341% surge, far outpacing the index’s 25% increase.
Palantir’s rise has been fueled by the strong adoption of its Artificial Intelligence Platform (AIP), which has significantly contributed to revenue growth. The company’s earnings report is expected to be one of the most closely watched of the season, with analysts forecasting another strong quarter.
Wall Street’s Q1 2025 Estimates and Full-Year Forecasts
According to Wall Street consensus estimates, Palantir is expected to report a 26% year-over-year revenue increase in the first quarter of fiscal 2025, rising from $634.3 million to $798.9 million. Earnings per share (EPS) are projected to grow 38%, reaching $0.11, compared to $0.08 in Q1 2024.
For the full year 2025, analysts estimate that Palantir’s revenue will hit $3.5 billion, with projected EPS of $0.48. These figures suggest continued momentum for the company as it expands its AI-driven data analytics capabilities across government and commercial sectors.
Potential Government Contracts and Strategic Expansion
Market speculation suggests that Palantir may see additional growth opportunities under the incoming Trump administration, which could introduce new government contracts. There is particular interest in the Department of Government Efficiency (DOGE), a newly created entity led by Tesla CEO Elon Musk, which is focused on improving efficiency within federal agencies.
Palantir has an extensive history of government contracts, with its public sector business accounting for 56% of its total revenue. The company is expected to continue securing contracts across U.S. government agencies and allied nations. However, analysts caution that management is unlikely to comment on potential government deals until official agreements are in place.
Palantir’s Strong 2024 Track Record and Q4 Guidance
Throughout 2024, Palantir consistently exceeded Wall Street’s revenue and earnings expectations. The company beat revenue estimates in all three reported quarters and outperformed earnings expectations in Q2 and Q3, demonstrating its ability to drive sustained growth.
- Q3 2024: Revenue grew 30% YoY, surpassing the 26% estimate, while EPS increased 43% YoY, exceeding the 29% forecast. Stock surged 23.5% post-earnings.
- Q2 2024: Revenue rose 27% YoY, ahead of the 22% estimate, while EPS surged 80% YoY, outperforming the 60% projection. Stock climbed 10.4% post-earnings.
- Q1 2024: Revenue increased 21% YoY, above the 17% estimate, while EPS grew 60%, aligning with expectations. Despite the solid results, stock fell 15.1%, due to concerns over a slowdown in U.S. commercial revenue growth.
For Q4 2024, Palantir projects adjusted income from operations between $298 million and $302 million, marking a 42% to 44% year-over-year increase. Analysts believe that Palantir’s 2025 guidance will have a greater impact on post-earnings stock movement than its actual Q4 results.
Market Outlook and Long-Term Perspective
As Palantir prepares to report earnings, expectations are high that the company will continue its streak of surpassing Wall Street’s projections. However, stock movement on February 4 will depend on broader market conditions, particularly within the technology sector.
Long-term investors remain focused on Palantir’s expanding AI-driven business model, strategic government partnerships, and financial performance. While short-term fluctuations may occur, sustained revenue growth and profitability improvements suggest the company is well-positioned for continued success in 2025 and beyond.