Palantir tops estimates, boosts fourth-quarter guidance on AI adoption

Core Insights - Palantir Technologies Inc. reported quarterly results that exceeded analysts' expectations, driven largely by artificial intelligence, leading to a 3% increase in stock price during extended trading [1] - The company provided optimistic guidance for the fourth quarter, expecting revenues of approximately $1.33 billion, surpassing the $1.19 billion forecast by analysts [1][4] Financial Performance - Earnings per share were reported at 21 cents, compared to the expected 17 cents, while revenues reached $1.18 billion, exceeding the anticipated $1.09 billion [1] - Total revenue for the quarter increased by 63% year-over-year, reaching over $1 billion for the second consecutive quarter, with net income more than tripling to $475.6 million [4] - For the full year, Palantir anticipates sales of about $4.4 billion, exceeding the Wall Street forecast of $4.17 billion, and has raised its free cash flow outlook to between $1.9 billion and $2.1 billion [4] Business Segments - Revenue from Palantir's government business grew by 52% year-over-year to $486 million, with military contracts being a significant contributor [2][3] - The commercial business more than doubled to $397 million, with total contract value for commercial deals quadrupling to $1.31 billion [5] Market Position and Stock Performance - Palantir's stock has surged over 170% this year, pushing its market capitalization past $490 billion, making it one of the most valuable technology companies globally [6] - The company has faced criticism regarding the use of its tools by government agencies, but it continues to secure significant contracts, including a deal worth up to $10 billion with the U.S. Army [3][7] Investor Sentiment - Retail investors have played a crucial role in driving Palantir's stock price, with CEO Alex Karp addressing concerns from analysts regarding the stock's high valuation relative to other technology giants [6][7]