Palantir experiences growth on optimistic revenue forecast

• Palantir boosted its full-year revenue view, surpassing Wall Street's expectations.
• In September, the S&P 500 stock index welcomed a new data analytics software provider as a member.

On Monday, the data analytics software maker's shares experienced a 13% increase in extended trading after reporting strong third-quarter results and revenue projections.

Here's how the company did compared to LSEG consensus estimates:

• Earnings per share: 10 cents adjusted vs. 9 cents expected
• Revenue: $726 million vs. $701 million expected

In the earnings release, Palantir co-founder and CEO Alex Karp stated that we completely destroyed this quarter due to the unstoppable demand for AI, which shows no signs of slowing down.

In the quarter, Palantir's revenue increased by 30% compared to the previous year, resulting in a net income of $143.5 million, or 6 cents per share, from $71.5 million, or 3 cents per share, in the same quarter last year.

Karp highlighted the increasing adoption of artificial intelligence in the company's U.S. government customer base, stating that the growth of the business is accelerating and financial performance is exceeding expectations as the demand for advanced AI technologies continues to rise from both government and commercial customers.

Palantir forecasted fourth-quarter revenue of $767 million to $771 million, while analysts surveyed by LSEG predicted $741.4 million.

Palantir has increased its revenue range for 2024, with a new range of $2.805 billion to $2.809 billion, compared to the previous range of $2.742 billion to $2.750 billion in August. This implies a 26% growth rate for the year. LSEG's consensus was $2.76 billion. Palantir is targeting over $687 million in U.S. commercial revenue for the year, which represents about 24% of the total revenue.

"The growth of our company is primarily driven by the rapid adoption of our platforms and AI capabilities by institutions in the US, according to Karp in a shareholder letter. However, he believes that Europe's allies and partners are falling behind as America continues to move forward."

Palantir expects to earn between $1.054 billion and $1.058 billion in adjusted operating income this year, which is higher than the $980.0 million predicted by analysts surveyed by StreetAccount.

In September, S&P Global declared that Palantir would be included in the S&P 500 stock index.

Palantir shares had a 141% increase from Monday's close, surpassing the 21% gain of the tech-heavy Nasdaq in 2024.

Analysts will join a conference call with executives to discuss the results at 5 p.m. ET.

This is breaking news. Please check back for updates.

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