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Palantir stock jumps 12% on revenue forecast, AI demand
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AI-driven demand fuels Palantir’s impressive Q3 performance: Data analytics software provider Palantir Technologies reported strong third-quarter results, surpassing Wall Street expectations and driving a significant surge in its stock price.

  • Palantir’s shares jumped 13% in extended trading following the announcement of its Q3 results and updated revenue guidance.
  • The company reported earnings per share of 10 cents (adjusted), exceeding the expected 9 cents, and revenue of $726 million, surpassing the anticipated $701 million.
  • Palantir’s revenue grew 30% year over year, with net income more than doubling from $71.5 million to $143.5 million compared to the same quarter last year.

AI adoption drives growth in U.S. government sector: Palantir CEO Alex Karp highlighted the accelerating adoption of artificial intelligence among the company’s U.S. government customers as a key driver of growth.

  • Karp emphasized the “unrelenting AI demand” that propelled the company’s strong performance in the quarter.
  • The CEO noted that Palantir is meeting an “unwavering demand” for advanced AI technologies from both U.S. government and commercial customers.
  • This focus on AI aligns with broader industry trends, as government agencies increasingly leverage AI for data analysis and decision-making processes.

Robust guidance reflects continued momentum: Palantir’s updated guidance for Q4 and full-year 2024 indicates strong confidence in its continued growth trajectory.

  • For Q4, Palantir forecasts revenue between $767 million and $771 million, significantly higher than analysts’ expectations of $741.4 million.
  • The company raised its full-year 2024 revenue guidance to a range of $2.805 billion to $2.809 billion, implying a 26% growth rate for the year.
  • Palantir is targeting over $687 million in U.S. commercial revenue for the year, representing about 24% of the total revenue.

U.S. market leads, while international faces challenges: Palantir’s growth is primarily driven by its U.S. operations, with international markets experiencing some headwinds.

  • The company highlighted the rapid adoption of its platforms and AI capabilities by U.S. institutions as the primary growth driver.
  • However, international commercial revenue declined 7% from the previous quarter due to challenges in Europe and reduced revenue from a government-sponsored customer in the Middle East.
  • CEO Karp noted that while the U.S. is forging ahead, European allies and partners are “being left behind” in terms of AI adoption.

Financial performance exceeds expectations: Palantir’s strong financial results and improved outlook have positively impacted investor sentiment.

  • The company aims for adjusted operating income between $1.054 billion and $1.058 billion for the year, surpassing analyst consensus estimates.
  • Palantir’s inclusion in the S&P 500 stock index, announced in September, has further boosted its profile among investors.
  • As of the close of trading on Monday, Palantir’s shares had risen 141% in 2024, significantly outperforming the tech-heavy Nasdaq’s 21% gain.

Broader implications for the AI and data analytics industry: Palantir’s strong performance and optimistic outlook provide insights into the growing importance of AI and advanced data analytics in both government and commercial sectors.

  • The company’s success underscores the increasing demand for sophisticated AI-driven solutions, particularly in the U.S. market.
  • The disparity between U.S. and international adoption rates highlights potential opportunities and challenges for AI companies operating in different global markets.
  • As AI continues to evolve and become more integrated into various industries, companies like Palantir that can effectively leverage this technology are likely to see continued growth and investor interest.
Palantir shares surge 12% on rosy revenue outlook

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