Palantir Technologies (PLTR) is the best S&P 500 stock Tuesday by a mile after the software provider beat top- and bottom-line expectations for its fourth quarter and issued a strong outlook for its first quarter and full fiscal year. At last check, shares were up more than 20%.
In the three months ending December 31, Palantir's revenue increased 36% year over year to $827.5 million, boosted by 52% growth in the U.S. to $558 million. Its earnings per share (EPS) rose 75% from the year-ago period to 14 cents.
"Our business results continue to astound, demonstrating our deepening position at the center of the AI [artificial intelligence] revolution," said CEO Alex Karp in a statement. "Our early insights surrounding the commoditization of large language models have evolved from theory to fact."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results beat analysts' expectations. Wall Street was anticipating revenue of $776 million and earnings of 11 cents per share, according to CNBC.
For its first quarter, Palantir said it expects to achieve revenue in the range of $858 million to $862 million, ahead of the $799 million in revenue analysts are expecting. For all of 2025, the company anticipates revenue of $3.741 billion to $3.757 billion. This compares to analysts' estimates for revenue of $3.52 billion.
"We are still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades," Karp wrote in his Letter to Shareholders. "This is not an incremental advance or marginal acceleration of our business. This is a new phase. And the momentum we are seeing across sectors, both commercial and government, is unlike anything that has come before."
Is Palantir stock a buy, sell or hold?
Palantir's share price has surged fivefold in the past 12 months, yet Wall Street is on the sidelines when it comes to the large-cap stock.
According to S&P Global Market Intelligence, the average analyst target price for PLTR stock is $73.90, representing a discount of nearly 30% to current levels. Additionally, the consensus recommendation is Hold.
Still, there are bulls to be found and financial services firm Wedbush is one of them. It maintained an Outperform rating (equivalent to a Buy) on the AI stock after earnings and raised its price target to $120 from $90.
"There are some transformational tech stocks that come along every decade and change the landscape ... Palantir is one of them in our view and proved it for all the tech world to see last night," says Wedbush analyst Daniel Ives. "Palantir is helping lead the AI Revolution into the use case phase as its AIP [Artificial Intelligence Platform] product moat is unmatched in our view."
Related Content
- Earnings Calendar and Analysis for This Week
- The DeepSeek Crash: What It Means for AI Investors
- Analysts' Top S&P 500 Stocks to Buy Now
-
High-Yield Savings Accounts vs No-Penalty CDs: Which is the Best Fit for You?Discover which option can help you reach your savings goals quickly.
-
I'm 58, divorced, and dating again, but women just seem to care about the size of my bank account.Does size matter? We ask experts in dating, financial planning and law for advice.
-
Seven Practical Steps to Kick Off Your 2026 Financial PlanningIt's time to stop chasing net worth and start chasing real worth. Here's how to craft a plan that supports your well-being today and in the future.
-
A Retirement Plan Isn't Just a Number: Strategic Withdrawals Can Make a Huge DifferenceA major reason not to set your retirement plan on autopilot: sequence of returns risk. Here's how to help ensure a bad market won't sink your golden years.
-
Dow Climbs 559 Points to Hit a New High: Stock Market TodayThe rotation out of tech stocks resumed Tuesday, with buying seen in more defensive corners of the market.
-
The 5% Diversification Rule: Your Secret Weapon for Smarter InvestingWhen it comes to investing, sometimes less is more. Following the 5% Diversification Rule helps you keep a more balanced portfolio.
-
Fish and Chips? More Like Fish and a Side of Customer Confusion and AngerYou expect chips — French fries, actually — to come with your order of fish and chips? Think again. This restaurant could be violating the truth-in-menu laws.
-
What the 2026 Tax Landscape Means for Advisers, From a Financial PlannerThe OBBB's impacts on 2026 are taking shape, amplifying the need for financial advisers' expertise in transforming stability into strategy for their clients.
-
From Vision to Value: A Blueprint for Helping to Build Your Advisory PracticeAs a financial professional, you can draw lessons from Advisors Excel's journey to find ideas, strategies and inspiration for growing your own advisory business.
-
Risk Is On Again, Dow Jumps 381 Points: Stock Market TodayThe stock market started the week strong on signs the government shutdown could soon be over.
