Palantir shares nudged up 1.5% to $44.92 on NASDAQ as JPMorgan’s research team highlighted a likely >30% price rally, citing the firm’s expanding AI footprint and customer base.
The company disclosed Q4 revenue of $631 million, up 12.5% from the $560 million recorded in the previous quarter, while the net loss widened to $37 million from $25 million. Earnings per share dipped to –$0.08, falling short of the consensus estimate of –$0.02.
Analysts noted that the revenue growth aligns closely with the $628 million consensus, but the broader loss margin—5.8% versus the sector average of 10%—raises questions about cost discipline. The company’s operating margin tightened to –5.8%, a 1.2‑point slide from the prior quarter’s –4.6%.
In the broader AI and data‑analytics sector, peers like Snowflake and Databricks posted operating margins above 12%, underscoring Palantir’s lag in profitability despite its top‑line momentum. JPMorgan’s bullish view hinges on an expected shift in margin performance as the firm ramps up its enterprise suite.
Looking ahead, Palantir will report Q1 FY25 earnings on July 6, with guidance on subscription revenue and a potential uptick in gross margin as the company scales its platform. Investors will also watch for any updates on the company’s cost‑control initiatives and new government contracts that could tilt the balance.