Palantir Technologies Inc Upwardly Revises Full-Year Financial Estimates on Strong Performance of AI.

Palantir Technologies Inc revised upwards its annual revenue and profit outlook for the second time this year on Monday.

The company's stock price rose more than 12% in after-hours trading, extending the year-to-date increase to over 39% due to the rise of AI-related stocks.

Alex Karp, CEO of the company, stated in a letter to shareholders that the third-quarter revenue exceeded expectations and achieved the largest quarterly profit in the April-June period.

Palantir was able to capture the increasing demand for services that support the development of AI technology in companies through its AI platform, which is used for testing, debugging, and evaluation of AI-related scenarios.

The company expects annual revenue to increase from the previous estimate of $2.680 billion-$2.690 billion to $2.740 billion-$2.750 billion, surpassing the expected $2.700 billion, according to LSEG data.

The annual forecast for adjusted operating profit has also been raised from the previous estimate of $0.868 billion-$0.880 billion to $0.966 billion-$0.974 billion.

This earnings report also alleviated concerns for some investors. Palantir's stock price dropped by about 9% last week due to the realization that the profits from the significant AI investment may take longer than initially expected, as shown in the earnings of major tech companies like Microsoft.