Palantir Shares Up 30% on Strong Revenue Outlook
Palantir Technologies Inc. reported strong third-quarter 2024 earnings, driven by increased demand for its AI and data analytics platforms. The company achieved a 30% year-over-year revenue increase, reaching $725.5 million, surpassing analyst expectations of $703.4 million. This growth was fueled by significant gains in both government and commercial sectors. Government revenue rose by 33% to $408 million, while commercial revenue increased by 27% to $317 million. Notably, U.S. commercial revenue surged by 54% to $179 million, highlighting Palantir's expanding footprint in the domestic market.
The company's GAAP earnings were 10 cents per share, a 43% increase from the previous year, exceeding analyst predictions of 9 cents per share. This profitability reflects Palantir's strategic focus on AI-driven solutions, which have attracted new partnerships and contracts, particularly in government sectors. CEO Alexander Karp emphasized the "unrelenting AI demand" as a key driver of this success in his letter to shareholders.
Looking ahead, Palantir projects fourth-quarter revenues between $767 million and $771 million, raising its full-year revenue forecast to between $2.805 billion and $2.809 billion. This optimistic outlook is supported by ongoing investments in AI capabilities and a strong pipeline of government and commercial contracts.
In response to these positive results, Palantir's stock has risen by 142% in 2024, reflecting investor confidence in the company's growth trajectory. As Palantir continues to innovate in AI and data analytics, it is well-positioned to capitalize on emerging market trends and maintain its upward momentum.
