Palantir Stock Hits New Highs: What’s Happening? – Palantir Technologies (NYSE:PLTR)

Palantir Technologies Inc PLTR shares hit new highs on Tuesday after the company reported strong quarterly results driven by “relentless” AI demand.

• Q3 EPS: 6 cents, against estimates of 4 cents

Palantir reported revenue growth of 30% year-over-year in the quarter driven by continued strength in the US. The company said U.S. revenue was up 44% year-over-year, as U.S. commercial revenue increased 54% and U.S. government revenue increased 40% year-over-year.

The company beat analyst estimates on the top and bottom lines for the fifth straight quarter as margins expanded for the eighth straight quarter, and the company guided for continuing GAAP operating income and net income in each quarter this year.

Customer numbers grew 39% year-on-year and 6% on a quarter-over-quarter basis. The company said it closed 104 deals worth over $1 million during the quarter.

“The growth of our business is accelerating and our financial results are exceeding expectations as we meet unwavering demand for the most advanced artificial intelligence technologies from our US government and commercial customers.” Alex Karpco-founder and CEO of Palantir, said in a letter to shareholders.

Check this out: Palantir CEO Alex Karp warns Europe risks doom without AI

Instructions: Palantir sees fourth-quarter revenue in the range of $767 million to $771 million, versus estimates of $741.44 million. The company also raised full-year guidance across its key metrics.

Palantir now expects full-year revenue in the range of $2.805 billion to $2.809 billion, versus estimates of $2.759 billion, and full-year US commercial revenue of more than $687 million, representing growth of at least 50%. The company now expects adjusted free cash flow to be over $1 billion for the year.

“We absolutely gutted this quarter, driven by relentless AI demand that won’t slow down. This is a US-driven AI revolution that has taken hold. The world will be divided between AI haves and have-nots. At Palantir, we plan to drive the winners,” Karp said.

After print, Wedbush analyst Dan Ives maintained an Outperform rating on the stock, noting that Palantir delivered “another robust quarter with beats across the board.”

“Despite the skeptics who have weighed in on the valuation over the past year, this was an important quarter to prove that PLTR’s partner ecosystem expansion and AIP bootcamps hit another gear,” Ives said.

PLTR Price Action: Palantir shares rose 15.7% to $47.93 at the time of the announcement on Tuesday, according to Benzinga Pro.

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Photo: Cory Doctorow from Flickr.