Palantir Shares Surge 12% to All-Time High After Q3 Earnings Beat and Raised Guidance

Nov 4, 2024, 09:18 PM

Palantir Technologies Inc. reported third-quarter earnings that surpassed analysts' expectations, driven by strong demand for its artificial intelligence (AI) software in the United States. The company reported adjusted earnings per share of $0.10, beating estimates of $0.09, and revenue of $725.5 million, exceeding the expected $701.1 million, representing a 30% year-over-year increase. Net income reached $144 million, the largest in the company's twenty-year history. U.S. revenue rose 44% year-over-year to $499 million, with U.S. commercial revenue up 54% to $179 million and U.S. government revenue increasing 40% to $320 million. Total customers grew by 39% year-over-year to 629. Adjusted operating income was $276 million, with a margin of 38%. Palantir also raised its fourth-quarter revenue guidance to between $767 million and $771 million, above analysts' estimates of $741 million, and increased its full-year 2024 revenue forecast to $2.805 billion to $2.809 billion. The company expects adjusted free cash flow in excess of $1 billion in FY2024. CEO Alex Karp attributed the company's performance to "unrelenting AI demand" and stated that "the world will be divided between AI haves and have-nots." This marks Palantir's 16th consecutive quarter of revenue growth. Following the earnings release, Palantir's stock surged approximately 12% in after-hours trading, reaching new all-time highs.