Palantir Technologies Inc. revised its annual revenue and profit outlook for the second time this year.
The company's stock price increased more than 12% in after-hours trading on the back of the rise in AI-related stocks, extending its year-to-date gain to over 39%.
CEO Alex Karp stated in a letter to shareholders that the company's third-quarter revenue exceeded expectations and recorded its largest quarterly profit for the April to June period.
Palantir was able to capture the growing demand for its services that support the development of corporate AI technology through its AI platform, which is used for testing, debugging, and evaluation of AI-related scenarios.
The company is expecting an annual revenue to increase from the original $2.680 billion to $2.690 billion, and from $2.740 billion to $2.750 billion. According to LSEG data, this exceeds the expected $2.700 billion.
Furthermore, the annual financial estimates for adjusted operating profit have been raised from the original $0.868 billion to $0.880 billion, and from $0.966 billion to $0.974 billion.
This financial report also alleviated concerns for some investors. Palantir Technologies Inc.

Short-term movements in US stocks are always elusive, and when market volatility increases, especially during downturns, investors tend to seek stability from sector leaders who have historically outperformed the S&P 500 stock price index. FAANG stocks have been supported by investors for many years, but companies that carry out stock splits tend to attract attention during periods of high uncertainty.
A stock split is understood as an event where a company adjusts the stock price and number of issued shares at the same ratio, and it is a cosmetic phenomenon that does not have a significant impact on the total market value or performance of a company.
There are two types of stock splits: forward splits and reverse splits. A sequential stock split lowers the nominal stock price of an enterprise and makes it easier for individual investors who cannot purchase fractional shares to buy them. Conversely, the purpose of a stock merger (reverse split) is to raise a company's stock price so that it satisfies minimum listing continuity standards on major stock exchanges.
There are also cases where stock mergers (reverse splits) are successful, but most investors are paying attention to companies that carry out forward splits. Such companies usually surpass their peers in innovation and execution, and are expected to outperform over the long term...