Palantir beats on revenue and EPS, raises FY Guidance, Shares +14%

Palantir Technologies 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.
Palantir Technologies Inc. announced on Monday its revenue in the third quarter of the fiscal year 2024 saw an annual increase of 30% to reach $726 million, beating estimates. The company's net income grew by 20% compared to the same period in 2023 to hit $143.5 million. Meanwhile, its diluted earnings per share (EPS) soared 100% to land at $0.06.
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.