Palantir Climbs On Earnings Beat. Non-U.S. Commercial Sales Growth Misses

Data analytics software maker Palantir Technologies (PLTR) on Monday delivered third-quarter earnings that topped estimates while revenue handily beat Wall Street targets. Palantir stock jumped as December-quarter revenue guidance came in well above expectations.

The company reported earnings after the market close.

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For the quarter ended Sept. 30, Palantir earnings using generally accepted accounting principles, or GAAP, were 10 cents a share, up 43% from a year earlier. Revenue rose 30% to $725.5 million, the software maker said.

Analysts had predicted Palantir earnings of 9 cents a share on revenue of $703.4 million.

In Q3, net income doubled to $144 million from a year earlier.

Palantir Stock: Non-U.S. Commercial Growth Slows

For the current quarter ending in December, Palantir says it expects revenue in a range of $767 million to $771 million. Analysts had predicted sales of $745 million.

On its earnings call with analysts, Palantir said total Q3 government sales rose 33% to $408 million while total commercial sales rose 27% to $317 million. Analysts had estimated total government sales of $378 million and commercial revenue of $328.5 million.

Also, Palantir said U.S. government sales rose 40% to $320 million while U.S. commercial sales rose 54% to $179 million.

On the stock market today, Palantir stock jumped nearly 13% to 46.74 in extended trading.

Heading into the Palantir earnings report, shares were up 142% in 2024.

Further, Palantir stock has outperformed since 2023 amid buzz over generative artificial intelligence technology.

Palantir has already mined the AI opportunity with government customers for intelligence gathering, counterterrorism and military purposes. Now Palantir aims to use generative AI to spur growth in the commercial market. The software maker has expanded into health care, energy and manufacturing.

Palantir Stock: Technical Ratings

Also, Palantir rolled out its “Artificial Intelligence Platform” in early 2023.

Palantir stock holds a perfect Composite Rating of 99, according to IBD Stock Checkup. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

As of Nov. 4, Palantir stock is extended above an entry point of 29.83, according to MarketSurge chart analysis.

Palantir is among the top AI stocks to watch.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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