Palantir's AI-Driven Growth Sparks Debate on Valuation and Future Prospects

Palantir Technologies: Can This Supercharged Artificial Intelligence (AI) Stock Continue Crushing the Stock Market in 2025? | The Motley Fool

Palantir stock shot up phenomenally following its latest quarterly report, but can it sustain the momentum next year? Palantir Technologies (PLTR 4.49%) stock has been in roaring form in 2024 with sizzling gains of 198% as of this writing, and it looks like its red-hot run is here to stay following an impressive set of results for the third quarter of 2024 that were released on Nov. 4. The company, which is known for providing software platforms to both commercial and government customers, delivered better-than-expected revenue and earnings for Q3. Its guidance was well ahead of what analysts were expecting, and investors pushed the stock up 23% the day after quarterly results were announced. Let's take a closer look at how Palantir fared in Q3, and determine whether this high-flying tech stock has enough gas in the tank to keep surging higher in 2025. Palantir reported Q3 revenue of $726 million, an increase of 30% from the same period last year. Its adjusted earnings grew at an even faster pace of 43% to $0.10 per share. Both metrics were ahead of analysts projections of $0.09 per share in earnings on revenue of $703.4 million. What's worth noting here is that Palantir reported relatively slower revenue growth of 17% in the same period last year. Additionally, Palantir's revenue growth came in at 27% year over year in the second quarter of 2024, so there has been a clear acceleration in Palantir's growth, and artificial intelligence (AI) is a key reason for that. Management made it clear on the latest earnings conference call that the growing demand for AI software has been playing a central role in powering the company's improved growth of late. That's not surprising as Palantir's Artificial Intelligence Platform (AIP) allows customers to customize and deploy AI models into their operations, enabling them to improve the efficiency of their businesses. Palantir's AIP has gained terrific traction among customers, leading to healthy growth in the company's customer base as well as the size of the deals that it is signing. Palantir finished the third quarter with 629 customers, an increase of 39% from the same period last year. An important thing to note is that the company landed 104 deals worth at least $1 million last quarter, up from 80 in the same period last year. Meanwhile, the number of deals valued at $5 million or more increased to 36 from 29 in the year-ago period. Deals valued at $10 million or more increased from 12 to 16 on a year-over-year basis. Thanks to the improvement in Palantir's customer base and the jump in deal values, the company's remaining performance obligations (RPOs) increased a solid 58% to $1.57 billion. The faster growth in this metric as compared to Palantir's revenue growth bodes well for its future. That's because the RPO refers to the total future value of a company's contracts that are yet to be fulfilled. Investors should note that Palantir's RPO is primarily composed of commercial contracts. To gauge the true potential of the company's revenue pipeline we need to take a look at its remaining deal value (RDV), a metric that for Palantir considers the "total remaining value of contracts as of the end of the reporting period," including government contracts. Palantir reported a 22% year-over-year increase in RDV last quarter to $4.5 billion, indicating that the company is in a position to maintain its healthy growth rate in the long run because of a solid contract pipeline. This is the reason why Palantir increased its 2024 revenue forecast to just over $2.8 billion from the earlier expectation of roughly $2.75 billion. The updated guidance would translate into year-over-year growth of nearly 26%, which would be an improvement over its 2023 revenue growth of 17%. So, it is evident that Palantir is indeed benefiting from the growing need for AI software applications in both commercial and government businesses, but there is one factor that may weigh on the stock in 2025. Palantir's remarkable surge in 2024 means that the stock is trading at a very expensive 46 times sales, which is significantly higher than the U.S. technology sector's average of 7.7. The company's price-to-earnings multiple of 255 further reinforces the fact that Palantir is a richly valued stock. The forward earnings ratio -- using estimates -- of 124 is significantly lower than the trailing multiple and points toward a sharp increase in the company's earnings, but it is still on the higher side when compared to the technology sector's average earnings multiple of nearly 49. The valuation indicates that Palantir is expected to continue clocking outstanding growth. And it could keep delivering faster growth thanks to the booming market for AI software platforms, a market that's expected to see 40% annual growth through 2028, generating annual revenue of $153 billion at the end of the forecast period. Another reason why Palantir's rich valuation could be justified is that it is reportedly the top-ranked vendor in the AI software platforms space. This is probably why the company is enjoying robust unit economics, meaning revenue from each customer is growing at a faster pace than costs. Palantir's operating margin jumped by an impressive 9 percentage points year over year in the third quarter to 38%. Consensus estimates are projecting Palantir's earnings to increase at an impressive annual rate of 59% for the next five years, and the company's forward price/earnings-to-growth ratio (PEG ratio) of 0.42 suggests that it is undervalued with respect to the growth that it is forecast to deliver. Investors looking to buy a growth stock that's benefiting from the adoption of AI may look past the company's trailing multiples, as the market could reward its outstanding earnings growth with more upside in 2025 and beyond. I think it can continue crushing the market in the new year.

Meet the Monster Stock That Continues to Crush the Market | The Motley Fool

This high-growth company is making itself known in the artificial intelligence market. The stock market as a whole has scored several wins so far this year. The S&P 500 roared into 2024, confirming its presence in a bull market as of January. Then the index went on to reach multiple record highs -- and today it's heading for a 25% annual gain. This is after last year's 24% increase, making these two years very successful ones for investors. On top of this, some high-quality stocks have even beaten the market, delivering triple-digit gains -- and one of these stocks in particular has attracted investors' attention in recent times. Though earnings have been strong, analysts have worried about its high valuation, and Wall Street's average price forecast even calls for it to fall 48% over the coming 12 months. But, against the backdrop of these concerns, the stock marches on and right now is on track for a gain of more than 200% this year. Let's meet this monster stock that continues to crush the market -- and consider whether it's a buy today. So, which unstoppable stock am I talking about? Palantir Technologies (PLTR 4.49%), a tech player that's been around for about 20 years but has seen earnings and share performance truly take off only over the past couple of years. The software-as-a-service (SaaS) company helps its customers aggregate all of their data and use it to make key business decisions -- and these often can be game-changing. For years, governments have been Palantir's biggest customers, but in recent times, a new high-growth customer has emerged: the commercial customer. In the latest quarters, the commercial customer's revenue growth has even surpassed that of government customers -- U.S. commercial revenue surged 54% in the recent quarter year over year compared with a 40% increase for U.S. government revenue. Commercial customers are flocking to Palantir for its latest innovation, its Artificial Intelligence Platform (AIP). Introduced last year, AIP harnesses the power of AI as it brings together a customer's data and leads that customer to important discoveries and helps them make better decisions faster. For example, the Cleveland Clinic is using AIP to optimize patient placement, and Wendy's is using the platform to improve supply chain management. Palantir's U.S. commercial customer count soared 77% to 321 in the quarter -- and that compares to a U.S. commercial customer count of only 14 just four years ago. And deal size has become significant too, with the company signing 104 deals valued at more than $1 million. Importantly, all of this is translating into solid financial results, with the company reporting record profit of $144 million in the quarter. Palantir also is winning when it comes to another measure that's key in the SaaS business, and that's the Rule of 40. The idea is SaaS companies should have a revenue growth rate and profit margin that together are 40% or higher -- this suggests a company is successful at prioritizing both profit and growth. Palantir's Rule of 40 is 68%. All of this is fantastic -- but could Palantir keep this momentum going? I'm optimistic for a few reasons. As mentioned, AIP still is a newish platform, and demand is high, so there are plenty of potential customers out there who may add to growth -- and current customers might expand their contracts with Palantir if they're satisfied with results so far. It's also worth remembering that AI, too, is in its early days, with today's $200 billion market forecast to reach $1 trillion later this decade. Palantir is well positioned to benefit from that potential growth. Finally, Palantir has been around for years, building its technology and gaining the confidence of customers -- all of that hard work over time should help the company today and moving forward in this high-growth phase. Of course, Palantir's shares aren't cheap at 148 times forward earnings estimates, and this could at some point weigh on appetite for the stock -- and limit near-term gains. Still, this level isn't ridiculous for a high-growth technology company in the early stages of its earnings story. And this measure represents a look at earnings projections over the coming year, which is rather short term. So now may be a good time for the long-term investor to look beyond this valuation measure and instead focus on Palantir's recent earnings reports and prospects over the several years to come. And from this angle, this monster stock that's beating the S&P 500 makes a solid buy right now.

Palantir Stock vs. Microsoft Stock: Wall Street Says Only 1 Will Head Higher From Here | The Motley Fool

Wall Street analysts' price targets show these two AI stocks making big moves in opposite directions. Enterprises are spending heavily on artificial intelligence (AI)-powered software to drive automation and efficiency, and use data to make smarter and faster decisions. And that trend may be just getting started. The enterprise AI market could grow at an annual rate of 37.6% between 2025 and 2030, according to analysis from Grand View Research. Two companies poised to see years of growth ahead in the enterprise-software space are Palantir Technologies (PLTR 4.49%) and Microsoft (MSFT -0.68%). Both companies have already seen the benefits of massive AI-related spending for their business and shareholders. Palantir stock is up 230% this year alone, as of this writing. Microsoft is up 77% since announcing an increased stake in generative AI leader OpenAI in early 2023. Despite the strong outlook for the industry, Wall Street analysts only expect one of these enterprise-software leaders to keep climbing higher over the next 12 months. Here's what investors need to know. Palantir develops software to help government agencies and commercial clients use big data to find insights and create operational efficiencies. Its initial focus on government contracts allowed it to develop a framework that it could apply to big commercial-enterprise customers as well. Palantir's commercial-customer count is growing quickly, up 51% year over year. U.S. commercial revenue grew 54% year over year in the third quarter, fueling overall growth of 30%. At the same time, its adjusted-operating margin expanded to 38% from 29% a year ago, as it leverages its growing scale. It's blowing past the Rule of 40, which suggests it could have even more room to grow faster if it spent more on sales and marketing. But CEO Alex Karp would rather focus his attention on building a great product for a few select clients with deep pockets. He suggests that leads to better results in the long term. Palantir offers two main software platforms, Gotham for government clients and Foundry for commercial clients. It introduced the Apollo platform in 2021 to ensure continuous operations for clients and allow them to run its software in virtually any environment. More recently, Palantir added its Artificial Intelligence Platform, AIP, which lets customers use natural language to explore and understand their data and automate workflows. Clients can also use AIP to develop applications around their data. AIP has been an essential tool for Palantir to drive demand for its platform among clients, proving the product-focused thesis Karp espouses. Palantir is doing exceptionally well from an operational standpoint. The problem is the stock is really expensive. Shares currently trade for an enterprise value-to-sales (EV/S) multiple of 46. Even if you look at analysts' 2025 estimates, the multiple only falls to 35. Jeffries analyst Brent Thill pointed out it's the single most expensive name in software after Palantir reported its earnings earlier this month. It's hard to see the company outperforming expectations by such a wide margin that it can make up for its extraordinarily high valuation. Microsoft has two ways it's capitalizing on the growing investment in AI: its cloud-computing platform Azure and its Copilot AI agent built into its enterprise software solutions. Azure has emerged as the top cloud platform for developers working on AI. That's bolstered by its early investment in OpenAI, which it added $10 billion to in January of 2023. Azure OpenAI usage more than doubled over the past six months, management said during its first-quarter earnings call at the end of October. As a result, it's seen Azure revenue accelerate 33% year over year in the most recent quarter. Management expects Azure revenue to accelerate more in the second half of fiscal 2025 as many of its capital investments from 2024 will take time to get up and running. It's seeing no shortage of demand for its capacity. Meanwhile, Microsoft is seeing strong demand for Copilot, which is integrated into Github and Microsoft 365. Github Copilot enterprise customers increased 55% sequentially last quarter, as they use the AI agent to generate code, improve workflow, and find vulnerabilities in their software. Nearly 70% of Fortune 500 companies use Microsoft 365 Copilot, and the number of people using it daily doubled sequentially last quarter. Copilot Studio gives enterprises ways to create agents that work with their data and connect to various pieces of Microsoft's software suite. Importantly, Microsoft's stronghold in the enterprise-software segment supports the Azure business, as enterprises slowly shift more of their workload to the cloud. Microsoft makes it easy to operate a hybrid cloud environment using Azure, allowing clients to move at their own pace. At its current price, Microsoft's stock looks attractive. Its enterprise value-to-sales (EV/S) multiple sits at just over 12. When you use analysts' fiscal 2025 estimate, that multiple falls closer to 11. Some may think its 32.5 times forward-earnings multiple is expensive, but when you consider Microsoft is growing from two trends in AI and has a lot of capacity to repurchase its shares, its premium looks far more reasonable. Wall Street certainly thinks so.

Palantir Technologies Just Took Wall Street to School. 1 Analyst Predicted the Outcome. | The Motley Fool

The artificial intelligence (AI) expert is profiting from the unrelenting demand for generative AI. There was a lot of ink spilled in the weeks leading up to Palantir Technologies' (PLTR 4.49%) financial release, and much of it was decidedly negative. The stock has been on an epic run over the past couple of years, gaining 545% since early last year, thanks to the accelerating adoption of artificial intelligence (AI). This has been accompanied by a commensurate increase in Palantir's valuation, with some on Wall Street sounding the alarm. The company released its results after the market close on Nov. 4, and to say Palantir sailed past expectations might be an understatement. The data mining and AI specialist eclipsed even the high end of analysts' expectations and punctuated its blockbuster report by raising guidance for the full year. While many on Wall Street were stunned by the breadth of Palantir's performance, one analyst predicted that many were underestimating the company's strength. Let's take a look at Palantir's results and what it means for the future. For the third quarter, Palantir generated revenue of $726 million, up 30% year over year and 7% quarter over quarter. This resulted in adjusted earnings per share (EPS) of $0.10, which climbed 43%. To put results in the context of expectations, analysts' consensus estimates were calling for revenue of $701 million and EPS of $0.09, so Palantir easily cleared both hurdles. The results were fueled by U.S. commercial revenue, which jumped 54% year over year and 13% sequentially -- well ahead of management's guidance for at least 47% growth. U.S. government revenue did its part, climbing 40%. Customer metrics were equally robust. Palantir's customer count grew 39% year over year, driven by a 77% increase in U.S. commercial customers. The company also fueled future growth, closing 104 deals worth at least $1 million. Of those, 36 were worth at least $5 million, and 16 were worth at least $10 million. Not only was Palantir driving robust current growth, but it also laid the foundation for a profitable future. The company's remaining performance obligation (RPO) -- or sales not yet booked as revenue -- climbed 59% year over year to $1.6 billion. It's good news when RPO is growing faster than current revenue, as this suggests the company's growth spurt has legs. Palantir's secret weapon has been its Artificial Intelligence Platform (AIP), which has experienced robust customer demand. The company has taken a unique approach, hosting boot camps that pair users with Palantir's engineers to ensure they develop viable solutions. The evidence is undeniable. Management noted numerous seven-figure deals that were signed within weeks of those customers attending one of Palatir's boot camp sessions. To put the icing on the cake, Palantir management raised the company's full-year revenue guidance to $2.8 billion, which would represent year-over-year growth of 26% after several successive quarters of accelerating growth. Palantir also increased its adjusted profit and free cash flow projections. The biggest contributor to its more bullish outlook is the U.S. commercial segment, as management is now forecasting growth of 50%, up from management's forecast for 40% growth issued earlier this year. Wedbush analyst Dan Ives wasn't a bit surprised by the outcome. In September, the longtime Palantir bull noted that "incrementally more enterprises" were discussing how they would deploy AIP in 2025. Ives said at the time that Palantir's "enterprise-driven AIP strategy [was] a clear 'game changer' for the Palantir story," warranting an outperform (buy) rating and a $45 price target. The call came as some analysts were moving to the sidelines, citing Palantir's lofty valuation. In the wake of Palantir's blowout performance, which Ives called "a masterpiece," the analyst has boosted his price target to $57. He cited the "unprecedented demand" for his bullish take while also noting the accelerating rate of "new customer conversions and existing deal expansions." These results validate Ives's (and my) bullish view. To be clear, not all investors will see Palantir stock as an opportunity, particularly since the stock is currently selling for roughly 140 times forward earnings. Given its lofty valuation and the inherent volatility of the stock, any failure -- real or perceived -- could bring Palantir crashing back to earth. If you have any doubts, check the stock chart between 2021 and 2023, when Palantir lost nearly 73% of its value. The market for generative AI is expected to be worth between $2.6 trillion and $4.4 trillion over the coming decade, according to global management consulting firm McKinsey & Company. If Palantir can earn even a small slice of this opportunity -- and I believe it can -- the stock will be worth much more five to ten years down the road. Given its consistent execution, massive opportunity, and growing profitability, I believe Palantir is a buy. For those put off by the stock's lofty valuation, look for opportunities to buy on any weakness or simply dollar-cost average into the stock.

Better Artificial Intelligence Stock: Palantir vs. Microsoft | The Motley Fool

Palantir aggregates large amounts of data from disparate sources to help its clients make faster decisions, and it's streamlining that process with generative AI tools. Microsoft owns the world's largest PC operating system (Windows), the leading productivity software suite (Office), and the second largest cloud infrastructure platform (Azure). It's also the top investor in OpenAI, the creator of ChatGPT, and it's been integrating that start-up's generative AI tools into its own services. Over the past 12 months, Palantir's stock has soared more than 170% as Microsoft's stock rose by less than 20%. Let's see why Palantir outperformed Microsoft by such a wide margin -- and if it's still the better AI stock for growth-focused investors. Palantir operates two main platforms: Gotham for its government customers and Foundry for its commercial customers. Most U.S. government agencies already use Gotham to manage their data, and Palantir says its ultimate goal is to become the "default operating system for data across the U.S. government." It has also been expanding Foundry to lock in large commercial customers. After going public through a direct listing in 2020, Palantir claimed it could grow its revenue by at least 30% annually through 2025. Its revenue rose 47% in 2020 and 41% in 2021, but it grew just 24% in 2022 and 17% in 2023. It attributed its deceleration to the macro headwinds for enterprise software spending and the uneven timing of its government contracts. But as its sales growth cooled off, it aggressively cut its spending and stock-based compensation expenses. As a result, it turned profitable on the basis of generally accepted accounting principles (GAAP) in 2023. For 2024, Palantir expects its revenue to rise 26% as it stays profitable on a GAAP basis. That growth was driven by its new government contracts (partly because of the ongoing conflicts in Ukraine and the Middle East), the accelerating growth of its U.S. commercial business, and the rising demand for its generative AI services. Its consistent profits also led to its inclusion in the S&P 500 this September. Analysts expect its revenue and earnings per share (EPS) to grow 26% and 148%, respectively, for the full year. From 2023 to 2026, they expect its revenue to have a compound annual growth rate (CAGR) of 23% as its EPS has a CAGR of 59%. Those growth rates are impressive, but its stock trades at a whopping 186 times next year's estimated earnings. That high multiple suggests that it's still being propped up by the buying frenzy in AI stocks. Over the past decade, CEO Satya Nadella pushed Microsoft through a grueling "mobile first, cloud first" transformation, which ultimately reignited its growth. Under Nadella, the tech giant transformed Office's desktop software into cloud-based services and mobile apps, expanded Azure to keep pace with Amazon Web Services, and transformed Windows into a central hub for its cloud, mobile, and AI services. It also continued rolling out new hardware devices and expanding its Xbox gaming unit with bold acquisitions. From fiscal 2020 to fiscal 2024 (which ended this June), Microsoft's revenue had a CAGR of 14% as its EPS experienced a CAGR of 20%. Most of that growth was driven by Azure, which expanded rapidly as more companies upgraded their cloud infrastructure to handle the soaring usage of mobile, cloud, and AI services. Microsoft's big investments in OpenAI also paid off as it bundled together the start-up's generative AI tools in its Copilot platform for Windows PCs and mobile devices. Those services bolstered Bing's position against Alphabet's Google in the search market, united its productivity services with AI algorithms, and connected more mainstream users to its generative AI tools. From fiscal 2024 to fiscal 2027, analysts expect revenue and EPS to both experience a CAGR of 15%. The stock still looks reasonably valued at 27 times next year's earnings, and it could remain one of the safest ways to profit from the long-term expansion of the cloud, AI, and gaming markets. It could also be lifted by unexpected tailwinds if U.S. antitrust regulators force Google to spin off Android or Chrome. Palantir has a bright future, but too much of its expectations are already baked into its sky-high valuations. Microsoft represents a more balanced way to profit from the secular expansion of the AI market. So for now, I think it's smarter to stick with Microsoft than chase Palantir's feverish AI-driven rally.

Palantir Stock Soars as "Unrelenting" Artificial Intelligence (AI) Demand Drives 43% Earnings Growth and Annual Guidance Raise | The Motley Fool

The AI-driven software company, originally focused on the U.S. government market, is briskly expanding its commercial business. Palantir Technologies (PLTR -1.22%) stock gained 13.7% in Monday's after-hours trading, following the software-as-a-service (SaaS) company's release of a robust third-quarter 2024 report. The stock's big rise is attributable to the quarter's revenue and earnings that both beat Wall Street's expectations, fourth-quarter revenue guidance that also came in higher than the analyst consensus estimate, and management's increasing its full-year 2024 guidance for revenue and a couple of other key metrics. As with recent quarters, investors were also likely pleased that Palantir continues to grow its commercial business at a rapid pace. The company was originally focused on governmental agencies, and its heavy dependence on government spending had concerned some investors. Data source: Palantir Technologies. GAAP = generally accepted accounting principles. Calculations by author except for revenue and EPS growth, which were provided by Palantir. Investors should focus on the adjusted numbers because they exclude one-time items. Wall Street was looking for adjusted EPS of $0.09 on revenue of $701.1 million, so Palantir exceeded both expectations, with the top-line beat particularly impressive. It also surpassed its own revenue guidance, which was for $697 million to $701 million. And it raced by its guidance for adjusted income from operations, which was for $233 million to $237 million. (Palantir does not issue earnings guidance.) Palantir generated cash of $420 million running its operations during the quarter, up 215% from the year-ago period. Its adjusted free cash flow was $435 million, up 209% year over year. The company ended the quarter with cash, cash equivalents, and short-term investments of $4.6 billion. It has no long-term debt. (All percentage growth figures are year over year.) Here's CEO Alex Karp's statement in the earnings release: We absolutely eviscerated this quarter, driven by unrelenting AI [artificial intelligence] demand that won't slow down. This is a U.S.-driven AI revolution that has taken full hold. The world will be divided between AI haves and have-nots. At Palantir, we plan to power the winners. In his letter to shareholders, Karp said that the "release of our newest platform, AIP, has transformed our business." AIP, which stands for "artificial intelligence platform," was launched in mid-2023, and has boosted Palantir's growth. I couldn't agree more with Karp's comments about AI taking "full hold." It's why I'm also bullish on shares of AI chip leader Nvidia. Q4 guidance: Going into the release, Wall Street had been modeling for Q4 revenue of $741.4 million, or 22% growth, so Palantir's guidance sprinted by this expectation. Annual guidance: Data source: Palantir Technologies. YOY = year over year. *Calculations by author except for U.S. commercial revenue growth guidance, which Palantir provided. Palantir's super-strong full-year guidance speaks for itself. The outlook for adjusted operating income growth of 67% year over year is phenomenal. In short, Palantir turned in a terrific quarter and guidance --again. Reiterating my closing after last quarter's earnings release: "Palantir stock is worth considering buying or at least watching if you're an investor interested in a company in the AI space that's profitable and growing at a fast clip." Palantir stock is trading at 115 times projected 2024 earnings. This is a very high forward price-to-earnings (P/E) ratio. But it's not crazy-high for the stock of a company that Wall Street estimates will grow earnings 44% this year and at an average annual rate of 58% over the next five years -- and that generates powerful free cash flows (FCFs). FCF has consistently and significantly been exceeding net income. And arguably, at least over longer terms, FCF is a more accurate gauge of a company's performance than net income or "earnings," which are simply accounting metrics.

Palantir Just Crushed Estimates Again. How High Can the Stock Go? | The Motley Fool

The data fusion specialist just delivered another smashing earnings report, and if its after-hours gains hold, it will have gained 172% year to date. Along the way, the company has delivered accelerating revenue growth, rapidly built up its commercial business, and gained entry to the S&P 500, thanks to its soaring market cap and its consistent and growing generally accepted accounting principles (GAAP) profitability. More than any other company, Palantir has also established itself as one of the software companies that's best capitalizing on new AI technologies, in large part due to its Artificial Intelligence Platform (AIP). The stock jumped 12.6% after hours on Monday, as it reported third-quarter revenue growth of 30% year over year to $725.5 million, which was well ahead of the consensus of $701.1 million. Growth in the U.S. paced the business, up 44% to $499 million, with the U.S. commercial segment driving revenue up 54% to $179 million. Unlike many of its software peers, Palantir is also highly profitable, with a GAAP operating margin of 16% and an adjusted operating margin of 38%. Its adjusted earnings per share increased from $0.07 to $0.10, ahead of the consensus at $0.09. The company also raised its full-year revenue guidance from $2.74 billion-$2.75 billion to $2.805 billion-$2.809 billion. The third-quarter results represented Palantir's fifth straight quarter of accelerating revenue growth, an impressive feat even amid the excitement around artificial intelligence. If there were a reason to be skeptical about Palantir stock coming into its report, it would seem to be its valuation. As Palantir has soared this year, its multiple has also expanded. Coming into the earnings report, Palantir was trading at a sky-high price-to-sales ratio of 40. That kind of valuation typically doesn't end well, but the AI-driven software stock continues to buck the odds with accelerating revenue growth and expanding profitability. Palantir's model also bodes well for future growth, as it's already built its AI Platform, and the marginal cost of rolling it out to new customers is minimal. In the third quarter, sales and marketing, its biggest individual line item cost, rose 19%, and overall operating expenses were up just 14%, helping the company's GAAP operating income nearly triple. That margin-expanding pattern looks poised to continue as interest in AI builds, and Palantir's entrenched government relationships and applications in industries like healthcare, manufacturing, and insurance give it an advantage. The company has been early to integrate with large language models, but CEO Alex Karp argued that LLMs are effectively a commodity, and what makes the company special is that it allows companies and government agencies to run LLMs using their data. Additionally, Palantir says it's already built the AI applications to allow its customers to benefit from the new large language models. Management also noted that the cost of AI inference has fallen sharply, which should encourage more companies to adopt Palantir's AI tools. At a revenue run rate of $3 billion, Palantir is still dwarfed by entrenched software companies like Microsoft and Salesforce. However, the company foresaw a $119 billion total addressable market at the time of its IPO in 2020, and that's likely significantly larger today due to the emergence of generative AI. Given the company's accelerating revenue growth, unique product portfolio, and competitive advantages in AI, Palantir looks well prepared to capture more of that addressable market, as it has less than 3% of that currently. In other words, it's reasonable to expect the company to double, triple, or even grow its revenue by 10 times over the long run, given the size of the TAM and its current momentum. If it can continue down that path, the stock will keep moving higher. While it might seem easy to be skeptical of Palantir after its surge this year and high valuation, the company just proved why it's a winner.

Palantir Blasted to a New All-Time High Today. Is the Stock Still a Buy? | The Motley Fool

The artificial intelligence (AI) specialist sent its bears a clear message with its Q3 report. After a week or so when investors were more focused on the stock's lofty valuation and concerns about the momentum of artificial intelligence (AI) adoption, Palantir Technologies (PLTR 22.94%) delivered a third-quarter report on Tuesday morning that helped the stock shake off its brief malaise and sent it sharply higher. In fact, it rose by as much as 24.1% and hit a new all-time high. As of 1:51 p.m. ET, the stock was still up by 22.2% for the day. After a jump of that magnitude, some investors may wonder if it's simply too late to buy the stock. Palantir has been on a blistering rally since the advent of generative AI early last year, with the stock up by around 689% (as of this writing). The company's AI-powered data mining solutions were already used widely by agencies of the U.S. government and its allies, but the debut of Palantir's Artificial Intelligence Platform (AIP) has taken its U.S. commercial revenue to the next level. Some analysts and industry watchers have expressed concerns as to whether the company's growth streak could continue, but the seemingly insatiable demand for AI solutions was evident in Palantir's latest results. In the third quarter, revenue grew 30% year over year to $726 million, far outpacing the high end of management's forecast and analysts' consensus estimates, which were both at roughly $701 million. The results were fueled by U.S. commercial revenue, which soared by 54% and now accounts for 25% of total revenue. Furthermore, its U.S. commercial customer count climbed by 79%. The company's potential to expand its user base well beyond its defense and intelligence industry roots is seen as critical to Palantir's future success, and its progress in that regard has been undeniable. Additionally, the company's profits continued to expand as earnings per share (EPS) climbed 43%. The issue of Palantir's valuation remains. Wall Street is forecasting EPS of $0.43 next year, which means the stock is still selling for more than 100 times forward earnings -- so it won't be a fit for every investor. However, Palantir maintains a unique position in the AI ecosystem, having perfected its craft over more than two decades. Its "boot camps" give potential customers a way to work side by side with Palantir engineers to see how they would develop AI solutions that are directly relevant to their business needs. I am confident in Palantir's prospects, which is why I've been adding to my position. For those who are leery of its valuation, I would suggest using a dollar-cost averaging strategy or buying on any weakness.

Palantir Stock Jumps as AI Powers Growth. Is It Too Late to Buy the Stock?

Palantir Technologies (PLTR 0.63%) shares rocketed higher after the company once again reported accelerating revenue growth and boosted its full-year guidance. The stock has nearly tripled in price year to date. While Nvidia has become the winner of artificial intelligence (AI) infrastructure, Palantir is beginning to establish itself as one of the biggest AI winners on the software side. Let's take a closer look at the company's third-quarter results and whether it's too late to buy the stock. Accelerating revenue growth For the fifth straight quarter, Palantir's revenue growth once again accelerated. In a little over a year, its revenue growth has gone from 13% in the second quarter of 2023 to 30% this past quarter. In the prior quarter, Palantir grew its revenue 27% year over year. Growth within existing customers was strong, with trailing-12-month net dollar retention coming in at 118%. This metric measures the growth of customers that have been with the company for more than a year minus any churn of those customers. By segment, commercial revenue jumped 27% year over year to $31 million, led by a 54% jump in U.S. commercial revenue to $179 million. Excluding strategic commercial contracts, commercial revenue climbed 30%, with U.S. commercial revenue soaring 59%. International commercial revenue edged up just 3% to $138 million but dropped 7% sequentially. The company said the declines stemmed from a step-down in revenue from a government-sponsored enterprise in the Middle East and continued headwinds in Europe. The company said its AI Platform (AIP) is seeing "unprecedented demand" within its U.S. commercial business, helping add new customers as well as expanding within existing customers. The company says it has a decades-long lead in implementing AI applications at scale. On the government side of the business, revenue rose 33% year over year to $408 million. U.S. government revenue surged 40% year over year and 15% sequentially to $320 million. It was the strongest growth it's seen in 15 quarters from its largest customer. International government revenue, meanwhile, increased 13% year over year to $89 million but was down 5% sequentially from $93 million. Palantir credited its strong U.S. government growth to new awards for AI software offerings as well as the expansion of existing programs. It also pointed to favorable deal timing and the government year-end cycle for the boost. As it has done throughout the year, Palantir once again increased its full-year guidance. The company now expects revenue to come within a range of $2.805 billion to $2.809 billion and operating income to be between $1.054 billion and $1.058 billion. Below is a chart of some of the company's guidance changes: Source: Palantir For Q3, it projected revenue to come in between $767 million and $771 million, representing 26% to 27% growth from the $608 million in revenue it recorded a year ago. It is looking for adjusted income from operations to be between $298 million to $302 million. Is it too late to buy the stock? When I reported on Palantir's Q2 results back in August, I said I thought that its forward price-to-sales (P/S) ratio of about 17.5 was pricey. However, if the company beat its Q3 guidance similar to Q2 that with 30% revenue growth, the stock would not appear to be quite as pricey as it seemed at that multiple. As such, I said back in August that it was not too late to buy Palantir stock. Fast forward to the present, and Palantir delivered exactly that 30% revenue growth I discussed, and the stock popped. However, after this most recent surge in price, the stock now trades at a forward P/S ratio of 34 times next year's analyst estimates. Meanwhile, another similar revenue beat compared to its guidance would put Q4 revenue growth at 31%. PLTR PS Ratio (Forward 1y) data by YCharts Palantir's AIP offering is clearly gaining a lot of traction both with U.S. commercial customers and with the U.S. government. There appears little doubt that it will be a big AI software winner well into the future. That said, at some point, valuation does matter, and for me, we are now at that point. As such, I'd certainly suggest taking at least some partial profits. So, to answer the original question, yes, I'd consider it too late to buy the stock.

Where Will Palantir Stock Be in 3 Years? | The Motley Fool

Just weeks after joining the S&P 500, Palantir (PLTR 8.61%) impressed investors with its strong third quarter earnings report, sending shares up by 20%. CEO Alex Karp attributed this success to an "unwavering" demand for its artificial intelligence (AI) products, a promising sign not just for Palantir, but for the entire AI industry. The company is demonstrating the real-world value of AI, helping make the case that Silicon Valley's enormous AI-focused capital expenditures are justified. Let's take a look at the state of Palantir and where its stock might be three years from now. Palantir exceeded already high expectations from Wall Street. The company brought in $725 million for the quarter -- handily beating the analyst average of $703 million -- representing more than 27% growth from a year ago. Revenue has been steadily climbing for years, but a 27% hike is by far the largest since the middle of 2022. The real kicker is Palantir's ability to become ever more efficient. Its profit margin was up nearly 20% quarter over quarter and 275% from a year ago. This meant earnings per share (EPS) -- arguably the most important metric for investors to pay attention to -- spiked as well, up 80% from last year. While government contracts remain central to Palantir's success, U.S. commercial clients supercharges its growth. Its commercial segment grew by 54% from a year ago, and the company expects this to continue, finishing 2024 with 50% more commercial revenue than 2023. This is where we are seeing the appetite for more advanced AI applications bear fruit as Palantir's products help companies turn data into actionable insights, ultimately making them more profitable. The company's success is in part due to a new sales program it recently launched, where potential customers attend boot camps hosted by Palantir. The boot camps help the would-be-clients see just how useful its products can be. The strategy was borne of Karp's belief that his products were so good that they would sell themselves. It seems to be working. The genius of this strategy, apart from the fact it clearly works, is that it is relatively inexpensive. The traditional alternative is to build out a technical sales and customer success team that is expensive and time-consuming to train. These boot camps, while not cheap, are much more cost effective and can be quickly scaled up and down without the need to hire or fire personnel. This is part of how Palantir is finding novel ways to increase efficiency within the company and boost its bottom line. Palantir's valuation is particularly high, even for a company in high growth mode. Its price-to-earnings ratio (P/E) exceeds 260. For comparison, Nvidia's P/E is 66, already seen as high, while Alphabet's is 22. Granted, both of these companies are more mature, but Nvidia is actually growing faster than Palantir. P/E ratios may leave something to be desired here. If we want to better account for growth, the PEG ratio is a great metric. Here, you take a company's P/E and divide it by its growth rate. Anything under 1 tends to be considered fantastic; more than 2 is not typically ideal. Palantir's PEG is 2.2. Compare that to Nvidia and Alphabet, which both have a PEG of 1. Valuations aren't everything, and ultimately, a company's stock is worth whatever someone will pay for it. However, I do think this will be a problem for the stock over time. I think the next three years will see Palantir continue to succeed and grow revenue, but I'm not convinced it can continue to grow fast enough to justify this valuation over time.

Why Palantir Stock Was Soaring Today | The Motley Fool

Palantir easily beat estimates in its third-quarter earnings report. Shares of Palantir (PLTR 22.33%) were soaring today after the artificial intelligence (AI)-focused software stock posted better-than-expected results in its third-quarter earnings report last night, as revenue growth accelerated for the fifth quarter in a row. It posted strong margin expansion as well. As of 10:02 a.m. ET, the stock was up 20.3% on the news. Palantir, which is known for its data fusion software that allows governments and businesses to find and integrate data from multiple sources to produce useful information, easily beat revenue estimates in the quarter, driven by strong growth in the U.S. Overall revenue was up 30% to $725.5 million, well ahead of the consensus at $701.1 million. Revenue in the U.S. jumped 44% to $499 million, which included a 54% jump in U.S. commercial revenue to $179 million, and a 40% increase in U.S. government revenue to $320 million. Driven by its new artificial intelligence platform (AIP), the company has now reported five straight quarters of accelerating revenue growth, showing it is establishing itself as a valuable software platform in the AI era. On the earnings call, CEO Alex Karp described large language models as commodities, but said that institutions need the kind of tools that Palantir provides to leverage their data. On the bottom line, margins expanded as the business scaled up. Palantir reported a generally accounting principles (GAAP) operating margin of 16% and an adjusted operating margin of 38%. Adjusted earnings per share rose from $0.07 to $0.10, ahead of the consensus at $0.09. Karp said: "We absolutely eviscerated this quarter, driven by unrelenting AI demand that won't slow down. This is a U.S.-driven AI revolution that has taken full hold." Palantir has been one of the best-performing stocks on the market this year, as shares have now nearly tripled. Investors were also encouraged by its guidance hike, as Palantir now sees full-year revenue of $2.805 million to $2.809 million. The stock is expensive, but the company is clearly benefiting from AI momentum. If revenue growth remains strong, the stock still has a lot of upside potential from here.

Why Palantir Stock Popped 35% This Week | The Motley Fool

Shares of Palantir Technologies (PLTR 2.42%), an artificial intelligence (AI) data analytics company, jumped this week after the company reported better-than-expected third-quarter results and issued guidance that impressed investors. Palantir's stock was up 35% this week, as of this writing, pushing the company's stock up more than 200% over the past 12 months. Referring to its artificial intelligence platform (AIP), Palantir's chief revenue officer Ryan Taylor said on the company's earnings call, "In this winner-take-all AI economy, the divide is widening between those who are leveraging AIP and those who are not." Palantir has successfully tapped into demand for AI analytics, and its latest quarterly report proves this. Commercial revenue rose 54% to $179 million, and sales in the company's government segment popped 40% to $320 million, proving that Palantir's platform continues to be in high demand. Total sales rose 30% to 726 million, beating Wall Street's consensus estimate of $701 million, and adjusted earnings per share of $0.10 surpassed estimates of $0.09 per share. It wasn't just Palantir's quarterly results that investors were impressed with this week; management's fourth-quarter guidance likely also gave the stock a boost. The company said fourth-quarter revenue would be in the range of $767 million to $771 million, which represents a 26% increase at the midpoint of guidance. Management also increased its full-year revenue guidance to $2.8 billion (at the midpoint), which is an increase of 26% from 2023's sales. With its impressive financial results and strong guidance, it's no wonder Palantir's stock is flying high this week. And with the company's ability to offer a compelling AI analytics product to customers, investors likely have a solid artificial intelligence investment opportunity in Palantir.

Data analytics firm Palantir jumps as AI boom powers robust software adoption

Nov 5 (Reuters) - Palantir shares (PLTR.N), opens new tab jumped over 12% on Tuesday after the data analytics firm raised its annual revenue forecast for the third time, bolstering investor confidence that the artificial intelligence boom was fueling demand for its services. The company is among the biggest stock market winners of the generative AI boom, with its shares more than doubling in value this year -- a rally that has sparked concerns over its steep valuation. But Palantir's results late on Monday allayed some of those fears as demand rose thanks to its AI platform, which is used to test, debug code and evaluate AI-related scenarios, as well as its government-oriented services that include software to visualize army positions. Palantir raised its revenue forecast to between $2.805 billion and $2.809 billion for 2024, from its previous projected range of $2.742 billion to $2.750 billion. For the third quarter, the company saw its revenue from U.S. government contracts surge 40%, which made up more than 44% of its total sales of $725.5 million. "We see a long runway of growth in the government sector, owing to the massive demand for AI-first solutions across governmental functions such as the military and healthcare," Morningstar analysts said. But the analysts cautioned that the stock's recent surge in value means that "any bump in the road, such as sales execution challenges or weaker-than-expected top-line growth or guidance, could materially affect the stock's valuation". If premarket gains hold through the day, Palantir is expected to add $12 billion to its market value. It trades at a forward price-to-earnings ratio of 95.43, compared with 25.60 for peers Oracle (ORCL.N), opens new tab and 126.92 for Snowflake (SNOW.N), opens new tab. Palantir stock has outperformed the S&P 500 (.SPX), opens new tab index this year. It was added to the benchmark index late-September. Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar Our Standards: The Thomson Reuters Trust Principles., opens new tab

Data analytics firm Palantir jumps as AI boom powers robust software adoption

(Reuters) - Palantir shares jumped over 12% on Tuesday after the data analytics firm raised its annual revenue forecast for the third time, bolstering investor confidence that the artificial intelligence boom was fueling demand for its services. The company is among the biggest stock market winners of the generative AI boom, with its shares more than doubling in value this year -- a rally that has sparked concerns over its steep valuation. But Palantir's results late on Monday allayed some of those fears as demand rose thanks to its AI platform, which is used to test, debug code and evaluate AI-related scenarios, as well as its government-oriented services that include software to visualize army positions. Palantir raised its revenue forecast to between $2.805 billion and $2.809 billion for 2024, from its previous projected range of $2.742 billion to $2.750 billion. For the third quarter, the company saw its revenue from U.S. government contracts surge 40%, which made up more than 44% of its total sales of $725.5 million. "We see a long runway of growth in the government sector, owing to the massive demand for AI-first solutions across governmental functions such as the military and healthcare," Morningstar analysts said. But the analysts cautioned that the stock's recent surge in value means that "any bump in the road, such as sales execution challenges or weaker-than-expected top-line growth or guidance, could materially affect the stock's valuation". If premarket gains hold through the day, Palantir is expected to add $12 billion to its market value. It trades at a forward price-to-earnings ratio of 95.43, compared with 25.60 for peers Oracle and 126.92 for Snowflake. Palantir stock has outperformed the S&P 500 index this year. It was added to the benchmark index late-September. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar)

Data analytics firm Palantir jumps as AI boom powers software adoption

(Reuters) -Palantir shares jumped more than 14% before the bell on Tuesday, after the data analytics firm raised its annual revenue forecast for the third time, bolstering investor confidence that the AI frenzy was fueling demand for its services. The company is among the biggest winners of the generative artificial intelligence boom, with its stock price more than doubling in value this year -- a rally that has sparked concerns over its steep valuation. But Palantir's third-quarter results on Monday allayed some of those fears, thanks to strong demand for its AI platform, which is used to test, debug code and evaluate AI-related scenarios. It also provides software to governments that visualizes army positions. "Countless businesses now want to analyze data so they can make faster and more informed decisions; AI is at the heart of this work and Palantir is an expert in data analysis," said Dan Coatsworth, investment analyst at AJ Bell. Palantir raised its 2024 revenue forecast to between $2.805 billion and $2.809 billion, from its previous range of $2.742 billion to $2.750 billion. For the third quarter, the company saw its revenue from U.S. government contracts surge 40%, which made up more than 44% of its total sales of $725.5 million. Palantir's commercial revenue jumped 54%, reflecting its attempt to expand customer base in the private sector and reduce dependence on government work. The growth demonstrates that the commercial sector has proven to be a "fruitful opportunity", Coatsworth said. Morningstar analysts, however, cautioned that the stock's recent surge in value means that "any bump in the road, such as sales execution challenges or weaker-than-expected top-line growth or guidance, could materially affect the stock's valuation". If premarket gains hold through the day, Palantir is expected to add $13.8 billion to its market value. It trades at a forward price-to-earnings ratio of 95.43, compared with peer Oracle's 25.60 and Snowflake's 126.92. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar)

Palantir's Stock is Soaring -- While Analysts Are Calling for a Slide

Deutsche Bank said the company benefits from "a more entrenched retail investor following relative to everything else we cover." Palantir Technologies (PLTR) shares rocketed higher Tuesday after last night's earnings results comfortably beat expectations. Some analysts remain wary that the analytics software provider is overvalued. "There's no denying that [Palantir] is deserving of a premium valuation," wrote analysts at Mizuho after the company delivered revenue growth of 30% and raised its 2024 guidance. However, they said, it is "increasingly difficult to justify" the shares' valuation. Mizuho, which has an "underperform" rating on the shares, raised its price target to $37 from $30 -- which, however, still calls for the shares to decline. The stock was recently up some 20% to about $50, more than tripling this year; the mean price target tracked by Visible Alpha is closer to $33. Deutsche Bank analysts raised their price target to $26 from $21. Palantir, they wrote, benefits from what it calls "a more entrenched retail investor following relative to everything else we cover." Palantir trades at roughly double the multiple of the next most-expensive stock the bank covers, the analysts said. CEO Alexander Karp said the company, "absolutely eviscerated this quarter, driven by unrelenting AI demand that won't slow down." The company's U.S. commercial revenue grew 54% to $179 million in the period, and its U.S. government revenue improved 40% to $320 million. Executives cited AI-related demand as a driver of that growth.

Palantir's shares jump as 'unwavering demand' for AI lifts earnings

Shares in Palantir Technologies surged as much as 15 per cent in after-hours trading on Monday as Peter Thiel's data analytics group reported record quarterly income and raised its revenue forecast, citing high demand for its artificial intelligence software. Palantir shares have risen 140 per cent this year, adding about $60bn in market value. It means it now trades at more than 100 times future earnings, making it the most expensive software stock on the market. The Denver-based company said on Monday that revenues for the third quarter climbed 30 per cent to $725.5mn, far higher than the $703.7mn predicted by analysts. Net income rose to a record $144mn. Revenues from its US commercial business grew 54 per cent to $179mn, while its US government business grew 40 per cent to $320mn. Palantir was founded in 2003 by tech investors including Thiel and Alex Karp, its chief executive, to provide data governance and analytics to US federal intelligence agencies. Its AI software is now used by global organisations such as energy giant BP and the UK's National Health Service, although its largest customer remains the US government. The group has become a marquee stock for the AI investor frenzy as well as a so-called meme stock among retail investors who follow Karp's proclamations on patriotism and national defence. Its share price was further boosted by its inclusion in the S&P 500 in September. "The growth of our business is accelerating, and our financial performance is exceeding expectations as we meet an unwavering demand [for AI tools]," Karp wrote to shareholders on Monday. "The world is in the midst of a US-driven AI revolution that is reshaping industries and economies, and we are at the centre of it." Wall Street has grown cautious over Palantir's lofty valuation which has given it a far-larger premium than other tech groups benefiting from the AI boom, such as Oracle and Microsoft, which trade at less than 30 per cent of earnings. "We cannot rationalise why Palantir is the most expensive name in software," RBC analysts wrote in a note last week. The company said in March that interest in its new AI tools -- which help corporate, government and military customers analyse data and use it to make decisions -- was at unprecedented levels and had attracted big new customers including CBS Broadcasting and General Mills. On Monday, Palantir raised its revenue guidance for 2024 to about $2.81bn, beating analyst expectations of $2.76bn. It also said revenue from its US commercial business would climb more than 50 per cent this year to more than $687mn.

Analysts overhaul Palantir stock price target after Q3 earnings

Palantir Technologies shares powered firmly higher in early Tuesday trading Palantir (PLTR) , which was added to the S&P 500 last month, has established itself as key player in the defense industry, with a host of contracts with domestic and international agencies that focus on its data analytics and AI technologies. It's also seeing rapid growth in its commercial division, which includes the testing and reworking of AI systems through its AIP Logic platform, as well as "boot camps" for companies that are scaling the new technology across its business processes. The Denver-based group, which was founded by tech investors Peter Thiel and Joe Lonsdale, boosted its full-year revenue forecast for the third time this year, thanks in part to outsized gains from its non-military business. The group's U.S. business saw revenues rise by 44% over the three months ending in October to $499 million. Most of that, around $320 billion, was from the government side, although commercial revenues grew at a faster rate of 54% to $179 million. Palantir said it sees 2024 revenues in the region of $2.805 billion to $2.809 billion, an 8% improvement from its prior forecast, with operating income of around $1.055 billion. Commercial boost "Given how strong our results are, I almost feel like we should just go home," CEO Alex Karp told investors on a conference call late Monday. "We absolutely eviscerated this quarter, driven by unrelenting AI demand that won't slow down," he said in a statement. "This is a U.S.-driven AI revolution that has taken full hold. The world will be divided between AI haves and have-nots. At Palantir, we plan to power the winners." D.A. Davidson analyst Gil Luria, who boosted his price target on the group by $19 to $47 per share following last night's earnings, cited "unrelenting demand" from its U.S. operations. Related: Why Palantir stock is a 'generational' play "Palantir remains well positioned to benefit from surging enterprise interest in AI applications," he said. "AIP and boot camps continue to be highlighted as a key reason for growth with new and existing customers today as Palantir is able to establish production use cases with customers faster than before." Wedbush analyst Dan Ives called the group's quarterly earnings "eye-popping" and noted that its AIP Logic platform "continues to drive pipeline growth". "Despite the skeptics honing in on valuation for the past year, this was a major quarter to prove that Palantir's partner ecosystem expansion and AIP bootcamps hit another gear as more use cases for its entire portfolio meet the rising demand for enterprise-scale generative AI solutions while gaining further share in the AI Revolution," said Ives, who lifted his Palantir price target by $12 to $57 per share. Commercial boost William Blair analyst Louie DiPalma, however, was more skeptical, reiterating his 'underperform' rating on the stock, citing weakening overseas revenues and a reliance on "lumpy" government spending. "While investors may give Palantir a free pass since U.S. commercial exceeded international commercial, management has been de-emphasizing the international commercial division (which has the slowest quarter growth rate in two years," DiPalma said. Related: Veteran trader makes surprising call between Palantir, Nvidia stock "Despite recent positive developments, the new 2024 revenue guidance is merely in line with consensus from two years ago," he added. DiPalama also referenced the valuation concern cited by Wedbush's Ives, noting that the stock trades at a $118 billion market cap, compared to just $38 billion for rival Snowflake "although Snowflake has higher revenue ($3.5 billion vs. $2.8 billion for Palantir this fiscal year) and is growing at a similar rate in the same data analytics end-market." More Tech Stocks: Palantir shares were marked 14.6% higher in premarket trading to indicate an opening bell price of $46.80 each, a move that would extend the stock's six-month gain to around 88%. Related: Veteran fund manager sees world of pain coming for stocks

Palantir Stock Is Hitting New Highs: What's Going On? - Palantir Technologies (NYSE:PLTR)

"We absolutely eviscerated this quarter, driven by unrelenting AI demand that won't slow down," CEO Alex Karp says. Palantir Technologies Inc PLTR shares are making new highs on Tuesday after the company reported strong quarterly results driven by "unrelenting" AI demand. Q3 Revenue: $725.52 million, beating the consensus estimate of $701.13 million Q3 EPS: 6 cents, versus estimates of 4 cents Palantir reported 30% year-over-year revenue growth in the quarter propelled by continued strength in the U.S. The company said U.S. revenue grew 44% year-over-year as U.S. Commercial revenue jumped 54% and U.S. Government revenue climbed 40% year-over-year. The company beat analyst estimates on the top and bottom lines for the fifth consecutive quarter as margins expanded for the eighth straight quarter, and the company guided for continued GAAP operating income and net income in each quarter this year. Customer count grew 39% year-over-year and 6% on a quarter-over-quarter basis. The company said it closed 104 deals worth over $1 million during the quarter. "The growth of our business is accelerating, and our financial performance is exceeding expectations as we meet an unwavering demand for the most advanced artificial intelligence technologies from our U.S. government and commercial customers," Alex Karp, co-founder and CEO of Palantir, said in a letter to shareholders. Check This Out: Palantir CEO Alex Karp Warns Europe Risks Doom Without AI Guidance: Palantir sees fourth-quarter revenue in the range of $767 million to $771 million, versus estimates of $741.44 million. The company also raised full-year guidance across its key metrics. Palantir now expects full-year revenue in the range of $2.805 billion to $2.809 billion versus estimates of $2.759 billion, and full-year U.S. commercial revenue in excess of $687 million, representing growth of at least 50%. The company now expects adjusted free cash flow to be in excess of $1 billion for the year. "We absolutely eviscerated this quarter, driven by unrelenting AI demand that won't slow down. This is a U.S.-driven AI revolution that has taken full hold. The world will be divided between AI haves and have-nots. At Palantir, we plan to power the winners," Karp said. Following the print, Wedbush analyst Dan Ives maintained an Outperform rating on the stock noting that Palantir delivered "another robust quarter featuring beats across the board." "Despite the skeptics honing in on valuation for the past year, this was a major quarter to prove that PLTR's partner ecosystem expansion and AIP bootcamps hit another gear," Ives said. PLTR Price Action: Palantir shares were up 15.7% at $47.93 at the time of publication Tuesday, according to Benzinga Pro. Read Next: Cathie Wood's Latest Shake-up: Dumps Palantir And Jack Dorsey's Block Along With Tesla, Buys Amazon And Meta Photo: Cory Doctorow from Flickr. Market News and Data brought to you by Benzinga APIs

Palantir stock soars above 20% after third-quarter earnings beat

Shares of Palantir (PLTR+22.23%) rose over 20% on Tuesday morning after the data analytics software platform reported third quarter earnings and outlook far above Wall Street's expectations. The company's shares were up by around 15% during pre-market trading on Tuesday and surpassed 20% after the open. Palantir's shares have risen over 200% so far this year. For the third quarter, Palantir reported revenues of $726 million -- up 30% from the previous year, and an increase of 7% from the previous quarter. The company was expected to report revenues of $705 million for the quarter, according to analysts' estimates compiled by FactSet (FDS+0.63%). U.S. revenues were $499 million for the quarter -- up 44% from a year ago, and a 14% increase from the previous quarter. "We absolutely eviscerated this quarter, driven by unrelenting AI demand that won't slow down," Alex Karp, co-founder and chief executive of Palantir, said in a statement. "This is a U.S.-driven AI revolution that has taken full hold. The world will be divided between AI haves and have-nots. At Palantir, we plan to power the winners." The company, which counts the U.S. government as a major customer, reported that U.S. government revenues rose by 40% from the previous year to $320 million, while U.S. commercial revenue grew 54% year over year to $179 million. Palantir set fourth-quarter revenue expectations between $767 million and $771 million. For the full year, the company raised its revenue guidance to between $2.805 billion and $2.809 billion. In September, Palantir was added to the S&P 500, which Karp said in a letter to shareholders was "made possible by the strength of our business and expanding demand for our software."

Palantir's strong beat-and-raise driven by AI demand; DA Davidson lifts stock PT By Investing.com

On Tuesday, DA Davidson updated their financial outlook on Palantir Technologies Inc . (NYSE:PLTR), raising the price target to $47.00 from the previous $28.00 while maintaining a Neutral rating. The adjustment follows Palantir's reported earnings, which exceeded expectations with a significant revenue beat and year-over-year growth acceleration. Palantir's recent financial performance has been robust, with a notable revenue beat of approximately $27 million for the quarter, marking a 30% increase year-over-year. This growth rate is an uptick from the 27% observed in the previous quarter. The firm's US business has been particularly strong, with the US government sector showing a 40% year-over-year growth, a substantial rise from 23% in the prior quarter and 10% in the third quarter of the previous year. Palantir's net new US government revenue of $42 million constituted nearly all of the company's net new revenue. The company's US commercial sector also reported a solid performance, with a 59% year-over-year growth, excluding revenue from strategic commercial contracts. This figure is slightly down from the 70% growth rate seen in the last quarter. Revenue from strategic commercial contracts was $9.6 million, which was above management's expectations of around $7 million. Palantir attributes its growth in this area to the success of its AIP and boot camps, which have expedited the establishment of production use cases with customers. Contrasting with the strong domestic performance, Palantir's international commercial revenue saw a sequential decline of 7%, partly due to reduced revenue from a government-sponsored enterprise in the Middle East. Despite this, Palantir's overall revenue exceeded projections, and the company maintained cost discipline, leading to a significant Adjusted Operating Income beat of approximately $41 million, with margins improving to 38%. The firm emphasized that Palantir is well-positioned to capitalize on the increasing enterprise interest in AI applications, as evidenced by the company's sustained top-line acceleration and the broader market demand for AI solutions. In other recent news, Palantir Technologies Inc. also raised its full-year revenue guidance to $2.807 billion, indicating a 26% year-over-year growth rate. Palantir's inclusion in the S&P 500 in September 2024 further highlights its market leadership and profitability. Despite a 7% sequential contraction in international commercial revenue, the company managed to secure important contracts such as a multi-year renewal with BP (NYSE:BP). As per recent developments, Palantir secured 104 deals each worth over $1 million, contributing to a total U.S. Commercial contract value of nearly $300 million. The company expects Q4 revenue to be between $767 million and $771 million. However, the company's strategic commercial contracts now contribute only 1% of revenue and are deemed no longer relevant. Palantir's impressive financial performance, as highlighted in the article, is further supported by real-time data from InvestingPro. The company's revenue growth of 21.22% over the last twelve months, with a notable 27.15% quarterly growth in Q2 2024, aligns with the strong performance mentioned in the DA Davidson update. Palantir's gross profit margin stands at an impressive 81.39%, reflecting the company's ability to maintain high profitability in its operations. This is particularly relevant given the article's mention of Palantir's cost discipline and significant Adjusted Operating Income beat. InvestingPro Tips suggest that Palantir "holds more cash than debt on its balance sheet" and has "liquid assets exceed short term obligations," indicating a strong financial position that could support its ongoing growth initiatives, particularly in AI applications where the company is well-positioned according to the article. It's worth noting that InvestingPro offers 21 additional tips for Palantir, providing investors with a comprehensive view of the company's financial health and market position. These insights could be particularly valuable given Palantir's recent price target upgrade and its positioning in the growing AI market.

Palantir's AI Gamble Pays Off As Customer Revenue From Single Customer Jumps 12x In Under 8 Months -- Alex Karp Quips: 'We Should Just Go Home' - Palantir Technologies (NYSE:PLTR)

Palantir Technologies Inc PLTR reported a dramatic expansion in customer spending, with one equipment rental company increasing its annual recurring revenue twelvefold in less than eight months after implementing the company's artificial intelligence platform, highlighting the rapid adoption of AI in enterprise operations. What Happened: The data analytics company, which joined the S&P 500 index in September, announced Monday that its third-quarter revenue surged 30% to $725.52 million, exceeding analyst expectations of $701.13 million. "Given how strong our results are, I almost feel like we should just go home," CEO Alex Karp told investors during the earnings call, reflecting on the company's robust performance. The company's U.S. operations showed particular strength, with revenue growing 44% year-over-year to $499 million. However, international operations faced headwinds, particularly in Europe, and saw a decline in revenue from a government-sponsored enterprise in the Middle East. Despite these challenges, Palantir continues to build international partnerships. "We continue to capitalize on targeted growth opportunities in Asia, the Middle East and beyond," said Chief Financial Officer David Glazer, noting a multi-year renewal with BP as evidence of ongoing international expansion. See Also: Jim Cramer Keeps Recommending Tesla Because He Loves 'Space Stuff,' But He's Not Keen On Ford: 'I Can't Recommend The Stock' Why It Matters: Palantir raised its full-year revenue guidance to between $2.805 billion and $2.809 billion. The company expects fourth-quarter revenue between $767 million and $771 million, with adjusted income from operations projected at $298 million to $302 million. Palantir's U.S. commercial revenue growth is expected to exceed 50% for the full year, reaching at least $687 million, according to Glazer. The company reported earnings of six cents per share, double the figure from the same period last year and above analyst estimates of four cents per share. This marks the fifth consecutive quarter Palantir has met or exceeded analyst expectations for both revenue and earnings. Price Action: In after-hours trading, Palantir stock surged to $47.08, reflecting an increase of 13.69%. The stock closed at $41.41 on Monday, down 1.22% for the day. Year to date, Palantir's stock has shown growth, rising to 149.76%, according to data from Benzinga Pro. Read Next: Palantir, Trump Media, Hims & Hers Health, NXP Semiconductors, And Tesla: Why These 5 Stocks Are On Investors' Radars Today Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

What Wall Street Analysts Think of Palantir's Stock Ahead of Earnings

Palantir shares have more than doubled in value so far this year, as demand for its Artificial Intelligence Platform surged. Palantir Technologies (PLTR) will report third-quarter earnings after the market closes on Monday, with analysts more bearish than bullish on whether the analytics software provider's stock can sustain its recent momentum. Of the 12 analysts covering Palantir tracked by Visible Alpha, only two expect the company's stock has further to rise. Their price targets range from $16 to $50, with an average of $27.55 implying a 34% drop from Friday's closing price of $41.92. The gloomy projections come amid concerns about whether the stock can keep up the pace of recent gains on the back of strong demand for the company's Artificial Intelligence Platform. Palantir reported better-than-expected results for the second quarter and lifted its full-year guidance as sales surged 27% year-over-year. Consensus estimates call for Palantir to report third-quarter revenue growth of 26% to $704.9 million, and earnings per share of 5 cents, up from 3 cents per share a year earlier. The stock has climbed almost 40% since early September, when S&P Global announced Palantir would join the S&P 500 later that month, and more than doubled in value since the start of the year.

Palantir - a share like a rocket | Investing.com UK

Successful quarterly figures have caused the price of Palantir (NYSE:PLTR) shares to rise sharply. Investors are enthusiastic because the US software company exceeded expectations in the third quarter. Palantir generated revenues of 726 million US dollars, while analysts had only expected 704 million. This corresponds to an increase of 30 per cent compared to the previous year. Operating profit also rose significantly, from 40 to 113 million US dollars, and was thus well above the forecast of 87.3 million US dollars. For the fourth quarter, Palantir expects revenues of between $767 million and $771 million, which would also exceed analysts' expectations of $747 million. The optimistic outlook is also creating a positive mood: Palantir now expects revenues of $2.8 billion to $2.81 billion for the full year. 'Continued high demand for our leading AI technologies, from both government and private sector organisations in the US, continues to drive our growth and better-than-expected financial performance,' CEO Alex Karp wrote in his shareholder letter. He emphasised that the global AI revolution, led by the US, is transforming industries and economies. Palantir, according to Karp, is ideally positioned to benefit from this development. And now? Is it just going to continue like this forever? In general, we can answer this question with a clear 'yes'. In the short term, the stock will most likely form a high soon and then enter a very important correction for us. Why is it important? Quite simply because we only ever buy at the bottom of significant corrections. And that will soon be the case. By the way, did you know that we send a trading signal to our customers every time we buy or sell? This ensures that we can trade quickly. We bought Palantir at the bottom of a relevant correction on 06.06.2024. Our position at the time, and that of our customers, is in very good shape at almost 110%. If you would also like to receive the next trading signal, then sign up with us right away. We are the fastest growing analysis company in Europe. Eight out of ten customers make significantly better trading decisions after just a short time. You should be part of it. You can join us by clicking on the link above next to my profile picture. Disclaimer/Risk warning: The information provided here is for informational purposes only and does not constitute a recommendation to buy or sell. It should not be understood as an explicit or implicit assurance of a particular price development of the financial instruments mentioned or as a call to action. The purchase of securities involves risks that may lead to the total loss of the capital invested. The information provided does not replace expert investment advice tailored to individual needs. No liability or guarantee is assumed, either explicitly or implicitly, for the timeliness, accuracy, appropriateness or completeness of the information provided, nor for any financial losses. These are expressly not financial analyses, but journalistic texts. Readers who make investment decisions or carry out transactions based on the information provided here do so entirely at their own risk. The authors may hold securities of the companies/securities/shares discussed at the time of publication and therefore a conflict of interest may exist.

Palantir shares surge over 12% on strong earnings and raised revenue outlook - SiliconANGLE

Palantir shares surge over 12% on strong earnings and raised revenue outlook Shares in Palantir Technologies Inc. rose more than 12% in late trading today after the big-data analytics company reported stronger-than-expected earnings and revenue in its fiscal third quarter and raised its full-year outlook. For the quarter that ended on Sept. 30, Palantir reported adjusted earnings per share of 10 cents, up from seven cents per share in the same quarter of last year, on revenue of $725.5 million, 30% year-over-year. Both were beats, as analysts had been expecting adjusted earnings per share of nine cents on revenue of $705 million. Palantir's strong numbers were driven by customer growth, as the company closed 104 deals in the quarter worth more than $1 million and its overall customer count grew 39% year-over-year and 6% quarter-over-quarter. A decent portion of the company's growth was driven by the U.S. government. Palantir reported that U.S. government revenue rose 40% year-over-year and 15% quarter-over-quarter, to $320 million. U.S. commercial revenue also grew, up 54% year-over-year, to $179 million. Cash from operations in the quarter came in at $420 million, representing a 58% margin, and Palantir ended the quarter with $4.6 billion on hand in cash, cash equivalents and short-term U.S. Treasury securities. Notable business highlights in the quarter included Palantir partnering with the government of Ukraine to use its Artificial Intelligence Platform to enhance decision-making in humanitarian de-mining operations. Palantir also signed a new, five-year $100 million contract to expand Maven Smart System artificial intelligence and machine learning capabilities across the U.S. military services. The Maven Smart System, developed by Palantir, integrates advanced AI and machine learning to enhance military operations by providing real-time data analysis and decision-making support across various U.S. military branches. Additionally, Palantir also introduced Visual Navigation, or VNav, a system designed to support autonomous drone missions in GPS-compromised areas by providing accurate navigation independent of GPS or radio control signals. The service uses onboard intelligence and software to ensure reliable operations even in challenging environments and, in doing so, enhances the effectiveness of autonomous systems in modern military scenarios. "We absolutely eviscerated this quarter, driven by unrelenting AI demand that won't slow down," Alexander C. Karp, co-founder and chief executive officer of Palantir, said in the company's earnings release. "This is a U.S.-driven AI revolution that has taken full hold. The world will be divided between AI haves and have-nots. At Palantir, we plan to power the winners." For its fiscal fourth quarter, Palantir expects revenue of $767 million to $771 million. For the full year, revised upward, the company now expects to see revenue of $2.805 million to $2.809 billion. "Palantir once again demonstrated its effective execution of capitalizing on AI excitement in the broader market," Jordan Berger, an analyst at global research firm Third Bridge, told SiliconANGLE in an email. "Palantir's U.S. commercial segment is a focal point for evaluating its execution of bringing AI solutions to market, and Q3 2024 performance remained consistently exceptional at 54% year-over-year growth, eliciting the company's second guidance raise for that segment this year and contributing to raised expectations for full-year 2024 revenue." Berger also noted that revenue growth accelerated to 30%, "boosted by an outsized contribution from the company's U.S. government segment as well, which markedly accelerated to 40% year-over-year growth."

Palantir raises 2024 revenue forecast again on robust AI adoption; shares surge

(Reuters) -Palantir Technologies on Monday raised its annual revenue forecast for the third time, betting on strong spending from governments and rising demand for its software services from businesses looking to adopt generative AI technology. Shares of the company rose about 8% in extended trading. The data analytics company has benefited from a boom in GenAI technology, as more companies turn to its AI platform, which is used to test, debug code and evaluate AI-related scenarios. The company now expects 2024 revenue in a range of $2.805 billion to $2.809 billion, up from its prior expectation of $2.742 billion to $2.750 billion. The company is among the largest beneficiaries of a rally in AI-linked stocks, with its shares up more than 140% so far this year. It was added to the S&P 500 in September and has outperformed the index's 20% year-to-date gain. It also raised its annual forecast range for adjusted income from operations to between about $1.05 billion and $1.06 billion. It earlier forecast $966 million to $974 million. "Top line growth, which is driven by the demand for AI, (is) flowing through to the bottom line," CFO David Glazer told Reuters. While businesses are increasingly using Palantir's services, a large chunk of its revenue comes from government spending. Palantir, whose services include providing software to governments that visualizes army positions, posted a 40% rise in U.S. government revenue in the third quarter, which made up more than 44% of total sales of $725.5 million. Analysts on average had expected revenue of $701.1 million, according to data compiled by LSEG. Palantir also recorded its largest-ever profit, with net income of $144 million in the third quarter, CEO Alex Karp said in a letter to shareholders. One of the Nordic region's largest investors, Storebrand Asset Management, said last month it sold its Palantir holdings due to concerns that the company's work for Israel might put it at risk of violating international humanitarian law and human rights. The company also forecast fourth-quarter revenue above estimates. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Maju Samuel)

Palantir shares jump 23% to record on uplifting guidance

Palantir Technologies CEO Alex Karp appears on a Bloomberg television interview during the FoundryCon event in Palo Alto, California, on March 7, 2024. Palantir shares jumped 23% on Tuesday and headed for a record close after the data analytics software maker reported robust third-quarter results and issued uplifting revenue guidance. The stock reached a high of $51.19, above the prior record of $45.14 reached last week. If the gain holds, it will mark the stock's biggest jump since Feb. 6, when shares popped 30%. Revenue climbed 30% to $726 million from a year earlier, topping the $701 million average analyst estimate, according to LSEG. Adjusted earnings per share of 10 cents beat the 9-cent average estimate. Analysts at Deutsche Bank said in a report that "the beat was driven by better-than-anticipated US Government performance," boosted by demand for artificial intelligence tools. "Palantir is among a handful of infrastructure software companies that have started to meaningfully monetize generative AI, where its competitive positioning benefits from longtime investment and deep expertise in complex data integration, and particularly its reputation for data security built into its ontology," the analysts wrote. Net income of $143.5 million, or 6 cents per share, was up from $71.5 million, or 3 cents per share, in the same quarter a year ago. The company called for fourth-quarter revenue of $767 million to $771 million. Analysts surveyed by LSEG had been looking for $741.4 million. Palantir is targeting more than $687 million in U.S. commercial revenue for the year, implying about 24% of the total. Bank of America bumped its price target from $50 to $55 and maintained its buy rating. "We continue to view the adoption of PLTR's AI-enabled products and reach in its early days, as more companies realize the time, resource, and cost savings possible," Bank of America analysts wrote in a note to investors. "In our view, Palantir's moat as the differentiated agnostic AI-enabler is only growing with each new use-case carrying compounding unit economics."

Palantir shares surge on rosy revenue outlook

Palantir shares jumped 12% in extended trading on Monday after the data analytics software maker reported robust third-quarter results and revenue guidance. Here's how the company did compared to LSEG consensus estimates: "We absolutely eviscerated this quarter, driven by unrelenting AI demand that won't slow down," Palantir co-founder and CEO Alex Karp wrote in the company's earnings release. Palantir's revenue grew 30% year over year in the quarter. Net income of $143.5 million, or 6 cents per share, was up from $71.5 million, or 3 cents per share, in the same quarter a year ago. Karp called out the adoption of artificial intelligence in the company's U.S. government customer base. "The growth of our business is accelerating, and our financial performance is exceeding expectations as we meet an unwavering demand for the most advanced artificial intelligence technologies from our U.S. government and commercial customers," Karp said in a letter to shareholders. With respect to guidance, Palantir called for fourth-quarter revenue of $767 million to $771 million. Analysts surveyed by LSEG had been looking for $741.4 million. Palantir bumped up its revenue range for all of 2024. It now sees $2.805 billion to $2.809 billion, compared with $2.742 billion to $2.750 billion in August. The new range implies a 26% growth rate for the year. LSEG's consensus was $2.76 billion. The company is targeting over $687 million in U.S. commercial revenue for the year, implying about 24% of the total. "It is the speed with which institutions in the United States, in particular, have adopted our platforms and artificial intelligence capabilities more broadly that has been, and we believe will continue to be, the driver of our growth," Karp wrote in a shareholder letter. "As America once again forges ahead, our allies and partners in Europe are being left behind." In September S&P Global announced that Palantir would join the S&P 500 stock index. As of Monday's close, Palantir shares were up 141% in 2024, while the tech-heavy Nasdaq had gained 21%. Executives will discuss the results on a conference call with analysts starting at 5 p.m. ET. This is breaking news. Please check back for updates.

Palantir lifts annual forecast after reporting blowout Q3 earnings; shares jump By Investing.com

Investing.com -- Palantir Technologies on Monday raised its full-year guidance after reporting blowout third-quarter earnings as the data analytics company continues to ride the AI wave, racking up new business wins. Palantir Technologies Inc (NYSE:PLTR) jumped more than 13% in afterhours trading following the news. For the three months ended Sept. 30, Palantir reported Q3 adjusted earnings of $0.10 a share on revenue of $725.5 million. That compared with analysts estimates for adjusted EPS of $0.09 on revenue of $703.4M. Customer count grew 39% year-over-year, driven by increased AI demand. "We absolutely eviscerated this quarter, driven by unrelenting AI demand that won't slow down," the company said. For 2024, the company is now guiding revenue in the range of $2.805B to $2.809B, up from a range of $2.742B and $2.750B previously. For Q4, the company guided revenue between $767M to $771M, compared with analyst estimates for $742.3M (NYSE:MMM).

Palantir shares surge over 12% on strong earnings and upward revenue outlook - SiliconANGLE

Palantir shares surge over 12% on strong earnings and upward revenue outlook Shares in Palantir Technologies Inc. were up over 12% in late trading today after the big data analytics company reported stronger-than-expected earnings and revenue in its fiscal third quarter and revised its full-year outlook upwards. For the quarter that ended on Sept. 30, Palantir reported adjusted earnings per share of 10 cents, up from seven cents per share in the same quarter of last year, on revenue of $725.5 million, 30% year-over-year. Both were beats, as analysts had been expecting adjusted earnings per share of nine cents on revenue of $705 million. Palantir's strong numbers were driven by customer growth, with the company closing 104 deals in the quarter worth over $1 million and its overall customer count grew 39% year-over-year and 6% quarter-over-quarter. A decent portion of the company's growth was driven by the U.S. government, with Palantir reporting that U.S. government revenue was up 40% year-over-year and 15% quarter-over-quarter to $320 million. U.S. commercial revenue also grew, up 54% year-over-year to $179 million. Cash from operations in the quarter came in at $420 million, representing a 58% margin and Palantir ended the quarter with $4.6 billion on hand in cash, cash equivalents and short-term U.S. Treasury securities. Notable business highlights in the quarter included Palantir partnering with the Government of Ukraine to use its Artificial Intelligence Platform to enhance decision-making in humanitarian de-mining operations. Palantir also signed a new, five-year $100 million contract to expand Maven Smart System artificial intelligence and machine learning capabilities across the U.S. military services. The Maven Smart System, developed by Palantir, integrates advanced AI and machine learning to enhance military operations by providing real-time data analysis and decision-making support across various U.S. military branches. Additionally, Palantir also introduced Visual Navigation (VNav), a system designed to support autonomous drone missions in GPS-compromised areas by providing accurate navigation independent of GPS or radio control signals. The service uses onboard intelligence and software to ensure reliable operations even in challenging environments and, in doing so, enhances the effectiveness of autonomous systems in modern military scenarios. "We absolutely eviscerated this quarter, driven by unrelenting AI demand that won't slow down," Alexander C. Karp, co-founder and chief executive officer of Palantir, said in the company's earnings release. "This is a U.S.-driven AI revolution that has taken full hold." "The world will be divided between AI haves and have-nots," Carp added. "At Palantir, we plan to power the winners." For its fiscal fourth quarter, Palantir expects revenue of $767 million to $771. For the full year and revised up, the company now expects to see revenue of $2.805 million to $2.809 billion.

Palantir Stock Climbs 13% After on Accelerating Growth, Higher Revenue Projection

Palantir, which sells artificial intelligence for analyzing data, on Monday raised its full-year 2024 revenue projection for the third time this year after growth accelerated in the third quarter. Demand for its software boosted revenue 30% to $725 million in the quarter, compared to the same period a year earlier, or roughly 5 percentage points higher than what Palantir previously told investors

What's Going On With Palantir Stock This Week? - Palantir Technologies (NYSE:PLTR)

Palantir Technologies Inc. PLTR shares are trading higher Friday after climbing new highs during the week. Here's what you need to know. The Details: On Monday, Palantir reported third-quarter revenue of $725.52 million, surpassing the $701.13 million estimate and earnings per share of 6 cents, beating expectations of 4 cents. Total revenue rose 30% year-over-year, with U.S. commercial revenue up 54% and U.S. government revenue up 40%. CEO Alex Karp added that the company's growth is "driven by unrelenting AI demand that won't slow down." Shares continued to rise after some analysts commented on Palantir's expanding U.S. customer base and AI product demand. Analysts at Wedbush, Mizuho and DA Davidson all raised their price targets, with Wedbush's Dan Ives citing Palantir's "robust" results and AI expansion. The stock hit another all-time high on Wednesday after Donald Trump's presidential win sparked market optimism on potential policy shifts, which could favor defense and AI sectors. Palantir, up 25% over the past week, was seen as a potential beneficiary of a Trump administration's defense and intelligence priorities. Palantir shares also faced early pressure after Jefferies downgraded the stock from Hold to Underperform, citing valuation concerns. However, the stock bounced back intraday Thursday after Palantir announced a partnership with Amazon Web Services (AWS) and Anthropic to bring advanced AI capabilities to U.S. defense and intelligence agencies. The partnership will integrate Anthropic's Claude AI models into Palantir's AI Platform for secure government use. PLTR Price Action: Palantir shares were up 3.42% at $58.30 at the time of writing, according to Benzinga Pro. Read Next: Sony Posts Upbeat Earnings, Joins Tesla, Upstart, Doximity, Fortrea, Axon Enterprise And Other Big Stocks Moving Higher On Friday Image Via Shutterstock. Market News and Data brought to you by Benzinga APIs

Palantir Q3 Earnings: Revenue Beat, EPS Beat, Customers Up 39%, Guidance Raise -- Results Driven By 'Unrelenting AI Demand That Won't Slow Down' - Palantir Technologies (NYSE:PLTR)

Palantir reports third-quarter earnings of 6 cents per share, beating analyst estimates of 4 cents per share. Palantir Technologies Inc PLTR reported third-quarter financial results after the market close on Monday. Here's a look at the key metrics from the quarter. Q3 Earnings: Palantir reported third-quarter revenue of $725.52 million, beating the consensus estimate of $701.13 million, according to Benzinga Pro. Total revenue was up 30% year-over-year. U.S. revenue grew 44% year-over-year to $499 million. U.S. Commercial revenue grew 54% year-over-year and U.S. Government revenue climbed 40% year-over-year. Palantir reported third-quarter earnings of six cents per share, beating analyst estimates of four cents per share. Palantir's GAAP earnings results were up 100% year-over-year. The company has now met or exceeded analyst estimates on the top and bottom lines in five consecutive quarters, per Benzinga Pro. Palantir's customer count grew 39% year-over-year and 6% on a quarter-over-quarter basis. The company said it closed 104 deals worth over $1 million during the quarter. Palantir generated $420 million in cash from operations and $435 million in adjusted free cash flow in the quarter. Palantir ended the quarter with cash, equivalents and short-term U.S. treasury securities of $4.6 billion. "We absolutely eviscerated this quarter, driven by unrelenting AI demand that won't slow down. This is a U.S.-driven AI revolution that has taken full hold. The world will be divided between AI haves and have-nots. At Palantir, we plan to power the winners," said Alex Karp, co-founder and CEO of Palantir. Check This Out: EXCLUSIVE: Top 20 Most-Searched Tickers On Benzinga Pro In October 2024 -- Where Do Tesla, Nvidia, Apple, DJT Stock Rank? Outlook: Palantir expects fourth-quarter revenue to be in the range of $767 million to $771 million, versus estimates of $741.439 million. The company also raised its full-year outlook across the board. Palantir now expects full-year revenue in the range of $2.805 billion to $2.809 billion versus estimates of $2.759 billion. The company now sees full-year U.S. commercial revenue in excess of $687 million, representing growth of at least 50%. Palantir now expects adjusted free cash flow to be in excess of $1 billion for the year. Palantir executives will hold a conference call with analysts and investors to further discuss the company's quarterly results at 5 p.m. ET. PLTR Price Action: Palantir shares were up approximately 140% year-to-date heading into the report. The stock was up 12.73% in after hours, trading at $46.68 at the time of publication Monday, according to Benzinga Pro. Read Next: Wall Street Struggles Ahead Of Election Day, Energy Sector Outperforms, Solar Stocks Rise: What's Driving Markets Monday? Photo: Shutterstock. Market News and Data brought to you by Benzinga APIs

Palantir Technologies Gears Up For Q3 Print; Here Are The Recent Forecast Changes From Wall Street's Top Analysts - Palantir Technologies (NYSE:PLTR)

Palantir Technologies Inc. PLTR will release earnings results for its third quarter, after the closing bell on Monday, Nov. 4. Analysts expect the Denver, Colorado-based company to report quarterly earnings at 9 cents per share, up from 7 cents per share in the year-ago period. Palantir Technologies projects to report revenue of $701.13 million for the quarter, according to data from Benzinga Pro. The company recently announced a strategic partnership with L3Harris Technologies Inc. LHX to combine Palantir's Artificial Intelligence Platform with L3Harris' sensor and software-defined systems. The collaboration aims to support U.S. Army programs and expand capabilities in AI-driven defense technology, enhancing situational awareness and target identification. Palantir Technologies shares gained 0.9% to close at $41.92 on Friday. Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables. Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period. Mizuho analyst Matthew Broome maintained an Underperform rating and raised the price target from $24 to $30 on Oct. 17. Wedbush analyst Daniel Ives maintained an Outperform rating and increased the price target from $38 to $45 on Sept. 26. Raymond James analyst Brian Gesuale downgraded the stock from Outperform to Market Perform on Sept. 23. B of A Securities analyst Mariana Perez maintained a Buy rating and raised the price target from $30 to $50 on Sept. 10. Northland Capital Markets analyst Michael Latimore initiated coverage on the stock with a Market Perform rating and a price target of $35 on Aug. 22. Considering buying PLTR stock? Here's what analysts think: Read This Next: Jim Cramer Likes Cava Group, Calls This Utilities Stock 'Terrific' Market News and Data brought to you by Benzinga APIs

Palantir Reports Record Profit, Cites 'Unwavering' AI Demand

Palantir Technologies Inc. reported quarterly revenue that beat analysts' estimates and raised its forecast for operating income in the current period, citing high demand in the US for its artificial intelligence software. Third-quarter sales increased 30% to $725.5 million, the Denver-based company said Monday in a statement. Analysts, on average, estimated $703.7 million, according to data compiled by Bloomberg. Palantir also reported net income of $144 million, a record for the company.

What's Going On With Palantir Stock Monday? - Palantir Technologies (NYSE:PLTR)

Analysts expect the company to report third-quarter earnings of 9 cents per share and revenue of $701.13 million. Palantir Technologies Inc PLTR shares are in the spotlight Monday ahead of earnings after the bell. Here's what you need to know before the report. What To Know: Palantir is scheduled to report financial results for the third quarter after the market close on Monday. Analysts are expecting the company to report earnings of 9 cents per share and revenue of $701.13 million, according to estimates from Benzinga Pro. Last quarter, Palantir beat estimates on the top and bottom lines as revenue grew 27% year-over-year, led by strength in U.S. commercial revenue. Revenue from U.S. commercial customers grew 55% year-over-year as the company's U.S. commercial customer count jumped 83%. Palantir guided for third-quarter revenue of $697 million to $701 million and raised its full-year revenue outlook. The company also said it expected third-quarter adjusted income from operations of $233 million to $237 million and noted that it continues to expect GAAP operating income and net income in each quarter this year. The company's most recent quarter marked Palantir's seventh consecutive quarter of GAAP profitability. "Our growth across the commercial and government markets has been driven by an unrelenting wave of demand from customers for artificial intelligence systems that go beyond the merely performative and academic," Palantir CEO Alex Karp said in a letter to shareholders last quarter. See Also: Tesla Investors Confuse 'Valuation And Stock Price,' Says Gary Black As Investor Sees Recovery In Stock In a note last month, Wedbush analyst Dan Ives maintained an Outperform rating on Palantir shares and lifted the price target from $38 to $45, citing increased confidence in the company's enterprise-driven AIP strategy. The Wedbush analyst highlighted a series of checks suggesting that more and more enterprises are entering into discussions about the potential deployment of Palantir's AI platform. "With AI spending expected to ramp significantly within IT budgets in 2025, we believe the Messi of AI - Palantir is in a prime spot to continue expanding its pipeline/deal flow," Ives said. On the other hand, Mizuho analyst Matthew Broome maintained Palantir with an Underperform ahead of earnings, but raised the price target from $24 to $30. PLTR Price Action: Palantir shares are up approximately 144% year-to-date. The stock was roughly flat Monday at $41.75, according to Benzinga Pro. Photo: Shutterstock. Market News and Data brought to you by Benzinga APIs