Janice R. Andrews
Palantir Technologies announced another upward revision of its 2024 revenue projections on Monday, marking the third such increase this year. The company’s growth is primarily driven by expanding adoption of its artificial intelligence software solutions across both commercial and government sectors. The news triggered an approximate 8% jump in the company’s stock price during after-hours trading.
The data analytics specialist now anticipates annual revenue reaching $2.805-$2.809 billion, revised upward from its earlier projection of $2.742-$2.750 billion. The company also enhanced its adjusted operating income forecast to $1.05-$1.06 billion, substantially above its previous guidance of $966-$974 million.
Since joining the S&P 500 index in September, Palantir’s stock has demonstrated remarkable performance, climbing over 140% this year, significantly outperforming the broader market’s 20% gain. The company’s CFO, David Glazer, points to robust AI demand as the key driver of financial growth.
Government partnerships continue to be crucial for Palantir’s success, with U.S. government revenue surging 40% year-over-year in Q3. This segment constituted more than 44% of the company’s total quarterly revenue of $725.5 million, exceeding analyst predictions of $701.1 million.
The company achieved its highest quarterly profit to date at $144 million. However, Palantir recently faced controversy when Storebrand Asset Management withdrew its investment, citing concerns about the company’s Israeli operations and potential human rights implications.
The company maintains an optimistic outlook, forecasting fourth-quarter revenues to surpass market consensus, reinforcing its position in the AI industry.
