🍎 🍕 Less apples, more pizza 🤔 Have you seen Buffett’s portfolio recently?Explore for Free

Palantir raises 2024 revenue forecast again on robust AI adoption; shares surge

Published 2024-11-04, 04:11 p/m
© Reuters. The logo of U.S. software company Palantir Technologies is seen in Davos, Switzerland, May 22, 2022.   REUTERS/Arnd Wiegmann//File Photo
US500
-
PLTR
-

(Reuters) -Palantir Technologies on Monday 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.

Shares of the company rose about 8% in extended trading.

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.

"Top line growth, which is driven by the demand for AI, (is) flowing through to the bottom line," CFO David Glazer told Reuters.

While businesses are increasingly using Palantir (NYSE:PLTR)'s services, a large chunk of its revenue comes from government spending.

Palantir, whose services include providing software to governments that visualizes army positions, posted a 40% rise in U.S. government revenue in the third quarter, which made up more than 44% of total sales of $725.5 million.

Analysts on average had expected revenue of $701.1 million, according to data compiled by LSEG.

Palantir also recorded its largest-ever profit, with net income of $144 million in the third quarter, CEO Alex Karp said in a letter to shareholders.

© Reuters. The logo of U.S. software company Palantir Technologies is seen in Davos, Switzerland, May 22, 2022.   REUTERS/Arnd Wiegmann//File Photo

One of the Nordic region's largest investors, Storebrand Asset Management, said last month it sold its Palantir holdings due to concerns that the company's work for Israel might put it at risk of violating international humanitarian law and human rights.

The company also forecast fourth-quarter revenue above estimates.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.