Palantir Stock Soars as AI Revenue Nearly Doubles
Palantir stock surged on Tuesday after what the company’s CEO Alex Karp described as "otherworldly" performance.
The latest quarterly earnings report showed continued demand for Palantir’s AI software and the acceleration across both government and commercial markets, with a second-quarter revenue of $1.94 billion.
This represents a 93% increase compared to the same period last year, as the results exceeded Wall Street’s $1.81 billion forecast.
The stock market reacted immediately, as Palantir’s stock soared by more than 20% in pre-trading hours.
The largest growth once again came from Palantir’s U.S. business, with commercial revenue in the country increasing by a staggering 149% year over year to $764 million.
On the other hand, U.S. government revenue rose by 90% to $809 million.
This was also the first time that the company generated more than $1 billion in free cash flow, as it closed contracts worth $3.37 billion and generated $1.22 billion in free cash flow in this quarter alone.
"Our business is compounding at a rate and scale that we have never before witnessed," Alex Karp said in a letter to shareholders, adding that the core United States-based business continues to expand at an “unrelenting and breakneck pace."
Following the stronger-than-expected performance, Palantir raised its full-year revenue forecast to between $8.15 billion and $8.158 billion.
Adjusted earnings reached $0.41 per share, also coming in above analyst expectations of $0.34 per share.
I have always thought of myself as a writer, but I began my career as a data operator with a large fintech firm. This position proved invaluable for learning how banks and other financial institutions operate. Daily correspondence with banking experts gave me insight into the systems and policies that power the economy. When I got the chance to translate my experience into words, I gladly joined the smart, enthusiastic Fortunly team.
