By Nermeen Nabil Khear 
Companies like Palantir Technologies Inc. are the biggest beneficiaries of the increased demand for artificial intelligence solutions across both commercial and government sectors. The software company recorded a significant 23% rise in its stock price, with more upside expected as the demand for artificial intelligence solutions grows.
Palantir Technologies is known for its data analysis software and growing AI capabilities and has been a mainstay in the production of operational software for AI applications since the technology appeared on the scene.
This value provided by Palantir’s software technology led to an impressive 340% surge in its stock throughout 2024. The momentum has continued into 2025 as the company’s shares saw a significant increase of 23% after it forecasted a 2025 revenue of $3.75 billion, which is well above the predicted $3.54 billion by market analysts.
Palantir setting up for a strong year in 2025
In a recent earnings report released by Palantir, the software company revealed that it had recorded a substantial increase in earnings. The company announced quarterly revenue reaching $828M, which indicates a 36% increase year over year.
The company also reported adjusted earnings per share of 14 cents, surpassing analyst predictions of 11 cents.
In the earnings report, the company highlighted its expected annual revenue for 2025 to reach $3.75 billion, which is significantly higher than the previously anticipated $3.5 billion. The optimistic forecast is driven by a 52% year-over-year increase in US market revenue.
Alex Karp, Palantir’s chief executive officer, cites an “untamed organ growth” in demand for its artificial intelligence software as the reason for the bullish projections. As of the latest trading session, PLTR closed at $83.74, marking a 1.39% increase from the previous close.
Palantir market outlook
Palantir projected its US commercial sales in 2025 will rise about 54% to $1.08 billion. The company has also recently strengthened its connection with the US Defense Department, with sales to the department rising by 45% to $343 million.
The US commercial revenue increased by 64% to $214 million at the end of December last year. Palantir also recently extended one of its deals with the US Army, which is expected to bring in as much as $619 million through 2028. The company has also extended its AI work with the US Special Operations Command.
On a conference call after the results, Palantir’s CTO, Shyam Sankar, was asked about the potential effects of US President Donald Trump’s intention to cut the federal government’s budget as advised by the Department of Government Efficiency (DOGE).
“Palantir’s real competition is a lack of accountability in government,” Sankar said. “DOGE (the Department of Government Efficiency) is going to bring meritocracy and transparency to government” and prompt it to function more like the commercial market.
Karp, Palantir’s CEO, stated that the company is in a “new phase” and that the company must refrain from becoming complacent like other US companies failing to serve the nation’s interests. During the same conference call, Sankar stated that the AI race is “winner-take-all.”
“It’s going to be a whole nation of effort that extends well beyond the DoD in order for us as a nation to win,” Shankar stated. Palantir’s statements infer its commitment to be a major contributor to the cause.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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