Palantir CEO says Sales so hard execs have stopped, Palantir Technologies Shares Soar After Impressive Q3 Results revenue outlook

Palantir CEO: Palantir Technologies Inc. has captured the spotlight with a remarkable 13% increase in its stock price during after-hours trading, following the release of its third-quarter earnings report. The company’s performance has not only exceeded analyst expectations but has also underscored its pivotal role in the growing demand for artificial intelligence (AI) solutions.

Strong Financial Highlights

In its latest quarterly report, Palantir announced an adjusted earnings per share (EPS) of 10 cents, which surpassed the consensus estimate of 9 cents. Revenue for the quarter reached $726 million, outpacing expectations of $701 million. This represents a significant year-over-year growth of 30%. Additionally, Palantir recorded a net income of $143.5 million, or 6 cents per share, a substantial increase from $71.5 million, or 3 cents per share, reported in the same quarter last year.

Palantir’s co-founder and CEO, Alex Karp, expressed his enthusiasm about the results, stating, “We absolutely eviscerated this quarter, driven by unrelenting AI demand that won’t slow down.” This impressive performance highlights the growing trend of AI adoption among both government and commercial clients.

Future Projections and Guidance

Looking ahead, Palantir has set its sights high for the fourth quarter, forecasting revenue between $767 million and $771 million, significantly above the analysts’ expectation of $741.4 million. Moreover, the company has revised its full-year revenue guidance, now predicting total revenue of $2.805 billion to $2.809 billion, a notable increase from earlier projections of $2.742 billion to $2.750 billion. This new guidance indicates a robust 26% growth rate for the year, surpassing the consensus estimate of $2.76 billion.

Karp emphasized the rapid adoption of Palantir’s AI technologies, particularly within U.S. government agencies, as a key driver of growth. He stated, “The speed with which institutions in the United States have adopted our platforms and AI capabilities has been the driver of our growth.”

International Market Challenges

Despite its impressive domestic performance, Palantir faced hurdles in the international market. The company reported a 7% decline in commercial revenue outside the U.S. from the previous quarter, attributed to difficulties in Europe and reduced revenue from a government-sponsored customer in the Middle East, as explained by David Glazer, the company’s CFO.

Palantir’s Strategic Positioning

Palantir aims for an adjusted operating income in the range of $1.054 billion to $1.058 billion for the year, well above the analyst consensus of $980 million. This strong financial position comes as Palantir prepares to join the S&P 500 index, a significant milestone announced by S&P Global in September.

With its shares up 141% in 2024, compared to a 21% gain for the Nasdaq, investor confidence in Palantir’s AI capabilities is evident. Karp remarked, “This is a U.S.-driven AI revolution that has taken full hold,” reaffirming the company’s commitment to helping institutions leverage AI effectively.

Conclusion

Palantir Technologies is firmly establishing itself as a leader in the AI sector, with its recent earnings report reflecting impressive growth and strong demand for its analytics solutions. As the company continues to build on this momentum, it remains dedicated to innovation and delivering value to its clients and shareholders alike.

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