Palantir Technologies Inc. (PLTR) shares soared on Tuesday, hitting new highs after the company released impressive third-quarter earnings results. The strong performance was attributed to a surge in demand for Palantir’s AI-powered solutions, which the company described as ‘unrelenting.’
Palantir exceeded analysts’ expectations on both revenue and earnings for the fifth consecutive quarter. Revenue for the quarter reached $725.52 million, surpassing the consensus estimate of $701.13 million. Earnings per share (EPS) came in at 6 cents, beating the anticipated 4 cents. This marked the eighth straight quarter of expanding margins.
The company’s revenue growth was particularly strong in the U.S., where it witnessed a 30% year-over-year increase. Notably, U.S. Commercial revenue jumped 54%, while U.S. Government revenue climbed 40% during the same period.
Palantir’s CEO, Alex Karp, highlighted the accelerating growth of the company’s business and its ability to exceed expectations in a letter to shareholders. He attributed this success to the increasing demand for advanced AI technologies from both government and commercial customers in the U.S.
Looking ahead, Palantir anticipates continued momentum. The company expects fourth-quarter revenue to fall between $767 million and $771 million, exceeding analysts’ estimates of $741.44 million. Furthermore, Palantir raised its full-year guidance across all key metrics. It now projects full-year revenue in the range of $2.805 billion to $2.809 billion, surpassing the previous estimate of $2.759 billion. The company also expects full-year U.S. commercial revenue to exceed $687 million, signifying a growth rate of at least 50%. Palantir anticipates adjusted free cash flow to surpass $1 billion for the year.
Karp emphasized the significance of AI in the current landscape, stating, “This is a U.S.-driven AI revolution that has taken full hold. The world will be divided between AI haves and have-nots. At Palantir, we plan to power the winners.”
The strong earnings report prompted a positive reaction from analysts. Wedbush analyst Dan Ives maintained an “Outperform” rating on Palantir, noting that the company delivered another robust quarter with impressive results across the board. He emphasized the company’s expanding partner ecosystem and AIP bootcamps, which are contributing to its success.
Following the earnings announcement, Palantir shares surged 15.7% to $47.93 at the time of publication on Tuesday. This strong performance showcases the market’s confidence in Palantir’s ability to capitalize on the growing demand for AI solutions and its potential to maintain its leadership position in the AI space.
