Palantir (PLTR) beat Wall Street estimates for third-quarter revenue and profit on Monday and raised its full-year revenue outlook, as its US commercial business surpassed US government sales for the first time.
Third-quarter revenue rose 96% year over year to $2.313 billion, topping Wall Street estimates of $2.17 billion, according to Bloomberg data.
The stock fell 4% on Tuesday as investors weighed signs of slower sequential revenue growth. Palantir’s fourth quarter revenue of $2.65 billion came in above analyst estimates, but the outlook implies 15% quarter-over-quarter growth, down from 20% in the same period last year.
Palantir now expects full-year revenue of $8.530 billion to $8.534 billion, topping analyst estimates of $8.2 billion. It also raised its US commercial revenue target to more than $3.559 billion. Adjusted earnings per share of $0.44 beat consensus estimates of $0.40.
During the earnings call, management highlighted the company’s revenue growth and jump in commercial sales.
“We’ve gone from being the most attractive person in the physics department to being the captain of the football team,” Palantir CEO Alex Karp said on Monday.
170.22 -8.12 (-4.55%)
As of 10:07:39 AM EST. Market Open.
What else you need to know: Palantir stock was on pace to turn negative for the year as investors have been jittery over any potential signs of slowdown in AI spending. Shares of Palantir have been caught in the recent tech sell-off. The stock weathered headwinds earlier this year after fears of AI disruption hit the entire software complex.
Palantir has frequently pushed back on those concerns, arguing that the enterprise AI market is splitting into two camps: companies paying millions of dollars for model tokens only to receive “AI slop,” and those using the company’s underlying infrastructure layer.
Palantir’s commercial business has accelerated sharply, building on momentum from its historically dominant US government base.
Earlier this year, Palantir’s Maven Smart System became an official Pentagon program, cementing a multiyear role across US military AI projects
Wall Street is mostly bullish on the stock, with 30 Buy ratings, nine Holds, two Sells, and a consensus price target of $216 per share.
Source: finance.yahoo.com
