Palantia revised its full-year forecast upward due to strong performance of generative AI

Palantia Technologies on Monday revised its annual sales and profit forecasts for the second time this year upward.

The company's stock price rose 12% or more due to extended trading against the backdrop of a rise in AI-related stocks, and the year-to-date rate of increase increased to 39% or more.

Alex Karp (Alex Karp), Chief Executive Officer (CEO), stated in a letter to shareholders that sales for the 3rd quarter exceeded expectations and recorded the largest quarterly profit ever for the April-6 fiscal year.

With the company's AI platform used for testing, debugging, and evaluation of AI-related scenarios, Palantia was able to capture rapidly increasing demand for services that support companies' generative AI technology development.

The company predicts annual sales from the conventional 2.6 billion 80 million dollars to 2.6 billion 90 million dollars, and 2.7 billion 40 million dollars to 2.7 billion 50 million dollars. According to LSEG data, this is above the forecast of 2.7 billion dollars.

Also, the adjusted annual forecast for operating profit was raised from 0.8 billion68 million dollars to 0.8 billion80 million dollars from the conventional 0.8 billion68 million dollars, and from 0.9 billion66 million dollars to 0.9 billion74 million dollars.

The financial results also allayed some investors' concerns. Palantia's stock price fell about 9% last week in the financial results of major tech companies such as Microsoft, since it was shown that profits obtained from huge bets on AI may take longer than Wall Street initially anticipated.