Palantir Technologies Inc. (NYSE:PLTR) saw a significant rise in its stock price during Tuesday’s trading after the company revised its annual outlook upwards, driven by robust demand for its artificial intelligence software.
During a call with analysts on Monday, Palantir Chief Executive Officer Alex Karp described the earnings report as a “historic” achievement for the company, which specializes in data analysis tools for both private companies and government entities, including defense and intelligence applications. Karp also highlighted his concerns about current global tensions, noting that the situation in the Middle East could potentially escalate into severe conflicts.
Palantir has adjusted its 2024 revenue forecast to a range of $2.74 to $2.75 billion, surpassing analysts’ expectations of $2.7 billion as per Bloomberg data. The company has also revised its forecast for adjusted operating income, expecting it to fall between $966 million and $974 million for the year, exceeding the anticipated $882.9 million.
Following the announcement, Palantir’s shares surged by as much as 13.8% when trading resumed in New York on Tuesday. The stock had already risen by 40% year-to-date up until Monday’s close.
In a Monday letter to shareholders, Karp emphasized the importance of the company’s military-related work. He stressed that the strength and dominance of the US military are crucial and should be viewed as a basic expectation rather than a contentious issue.
Karp also noted that Palantir’s AI platform, launched just over a year ago, has already had a transformative effect on the company’s business model.
Founded by billionaire Peter Thiel in 2003, Palantir has built a reputation for its collaboration with the US government and its allies. The company’s software is now utilized across all branches of the US military and plays a role in advancing the nation’s AI capabilities. For the first time, Palantir reported that its trailing 12-month revenue from the US government has exceeded $1 billion after the second quarter.
Additionally, Palantir has expanded its commercial sector. The company reported commercial sales of $307 million, marking a 33% increase from the previous year and aligning with analysts’ estimates from Bloomberg. Government sales reached $371 million for the June quarter, up 23%, surpassing the expected $346.6 million.
Overall, quarterly sales rose by 27% to $678 million, beating Wall Street’s forecast of $652.8 million. Net income for the June quarter increased to $134 million, exceeding the anticipated $82.8 million.
Palantir Chief Financial Officer David Glazer mentioned in an interview on Monday that these results help maintain the company’s eligibility for inclusion in the S&P 500 Index, a milestone many investors are eagerly anticipating. “It’s the S&P’s call,” Glazer said.
Featured Image: Megapixl
