Palantir Posts 30% Revenue Growth, Raises Guidance; Stock Soars on AI Demand

Nov 4, 2024, 09:10 PM

Palantir Technologies Inc. reported third-quarter revenue of $725.5 million, a 30% increase year-over-year, surpassing analysts' estimates of $701.1 million. The company's adjusted earnings per share were $0.10, beating expectations of $0.09, while GAAP EPS doubled to $0.06. Palantir achieved an adjusted operating margin of 38% in the quarter. U.S. revenue grew 44% to $499 million, driven by a 54% surge in U.S. commercial revenue to $179 million and a 40% increase in U.S. government revenue to $320 million. The customer count increased by 39% compared to the prior year. The company raised its full-year 2024 revenue guidance to between $2.805 billion and $2.809 billion, exceeding consensus estimates of $2.76 billion, and forecasts U.S. commercial revenue of $687 million, representing 50% year-over-year growth. For the fourth quarter, Palantir expects revenue between $767 million and $771 million and adjusted operating income between $298 million and $302 million. CEO Alex Karp attributed the strong performance to "unrelenting AI demand" and stated that the world would be divided between "AI haves and have-nots." Net income reached $144 million, marking the largest profit in the company's twenty-year history. The company expects adjusted free cash flow to exceed $1 billion in fiscal year 2024, representing at least 37% year-over-year growth. Following the earnings release, Palantir's stock surged over 13% in after-hours trading, reaching new all-time highs.