Palantir stock (PLTR) is up 25% to record highs today following its Q4 earnings report smashing expectations. The company posted revenue of $828 million, beating expectations by over $50M. Its earnings per share also beat estimates by 3 cents, posting 52% YoY revenue growth. Chief Executive Officer Alex Karp says there is an “untamed organic growth” in demand for Palantir and its AI software, which is leading to a rise in stock.

Sales will be about $3.75 billion in 2025, the Denver-based company said Monday in a statement. Adjusted operating income will be about $1.56 billion. Analysts projected an average revenue of $3.54 billion and an operating profit of $1.37 billion. These optimistic projections caused Palantir stock (PLTR) to surge to a new ATH of $106 on Tuesday: a 26% climb in 24 hours.

What is Palantir, and Why is its Stock Surging?

Palantir Technologies is a leading provider of artificial intelligence systems. The company’s technology is used across all US military branches and by American allies in Ukraine and Israel. After Donald Trump’s election, investors showed enthusiasm for Palantir stock and the company’s promise to bolster US defense and manufacturing.

During Palantir’s Q4 earnings call, Palantir Chief Technology Officer Shyam Sankar was asked about the potential effects of US President Donald Trump’s efforts to cut the federal government’s budget led by the Elon Musk-run Department of Government Efficiency (DOGE). “Palantir’s real competition is a lack of accountability in government,” Sankar said. “DOGE is going to bring meritocracy and transparency to government” and prompt it to function more like the commercial market. Also on that call, CEO Karp highlighted that government spending efficiency measures could provide new opportunities for Palantir. The company currently derives two-thirds of its U.S. revenue from government contracts.

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Furthermore, Karp described AI-driven disruption as a long-term transformation. He says: “We are still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades.” In a time where the AI industry is King on the stock market, companies like Nvidia and Palantir (PLTR) continue to thrive.