AI sector, though considerably growing, is yet to move into a superfast lane. However, some of these have already given early indications of becoming the best growth stocks to buy now. One of these is
Palantir Technologies Inc (NYSE: PLTR)
Palantir Technologies Inc (NYSE: PLTR) had a strong financial performance in the fourth quarter of 2024, showing impressive growth. The company’s total revenue for the quarter hit $828 million, up 36% compared to the same period last year. This was driven by a significant increase in revenue from the U.S., which grew by 52% to $558 million. The company’s business with U.S. commercial customers grew even more, with revenue jumping 64% to $214 million, while government contracts also saw a 45% increase, reaching $343 million. Palantir closed 129 new deals worth at least $1 million, with 58 of those deals being worth $5 million or more. PLTR, is among the top growth stocks as it also set a new record by securing $803 million in new commercial contracts, which is 134% higher than the previous year. Palantir generated $460 million in cash from operations, a margin of 56%, and earned an adjusted income from operations of $373 million, which represents a 45% margin.
For the full year of 2024, Palantir also posted significant growth, with total revenue of $2.87 billion, up 29% from the previous year. U.S. revenue for the year grew 38% to $1.90 billion. The company saw substantial operational cash flow of $1.15 billion, representing a 40% margin, along with adjusted free cash flow of $1.25 billion and an adjusted income from operations of $1.13 billion, yielding margins of 44% and 39%, respectively. These results reveal that Palantir is now able to scale its operations in a manner consistent with the pattern of growth established so far with strong profitability intact.
Palantir provided a strong outlook for Q1 2025, with projected revenue between $858 million and $862 million, and adjusted income from operations between $354 million and $358 million. For the full year 2025, the company expects revenue between $3.741 billion and $3.757 billion, with U.S. commercial revenue exceeding $1.079 billion, representing a growth rate of at least 54%. Additionally, adjusted income from operations for the year is expected to be between $1.551 billion and $1.567 billion, with adjusted free cash flow projected between $1.5 billion and $1.7 billion.
In December 2024, Palantir extended its partnership with the U.S. Army by securing a $618.9 million contract. This contract falls under the Army Vantage program, where Palantir has been aiding the building since 2018. With this new agreement, Palantir will continue to help the Army manage critical information related to readiness, logistics, personnel, and risk management. The key objective is making the Army more efficient in all its operations by allowing quicker decisions across different elements of the force.
Source: Company’s Report
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