Palantir He surpassed Wall Street estimates on Monday, hiking the full year guidance for the first time, surpassing $1 billion in quarterly revenue.
The shares rose 3% after the bell.
This is how the company has provided an LSEG estimate.
Earnings per share: 16 cents adjusted vs. 14 cents expected revaluation: 1 billion vs. $940 million
Revenues for artificial intelligence software providers increased 48% over the period. Analysts weren’t expecting a $1 billion revenue benchmark from the Denver-based company until the fourth quarter of this year.
“We’re planning to increase our revenues… while reducing our numbers,” CEO Alex Carp told CNBC’s Morgan Brennan in an interview. “This is a crazy, efficient revolution. The goal is to earn 10x more revenue and get 3,600 people. It’s now 4,100.”
Karp did not specify whether the company would fire employees to achieve ideal staff.
The software analytics company has also boosted its year-round outlook guidance. Currently, Palantir expects revenues to range from $4.142 billion to $4.15 billion for a year, ranging from $3.89 billion to $39 billion.
Palantir for the third quarter forecasts between $1.083 billion and $1.087 billion, breaking analyst estimates of $983 million. Palantir has also lifted its operating profit and year-round free cash flow guidance.
Palantir’s US revenues have grown by 68% to $733 million over a year ago, while US commercial revenues have almost doubled from a year ago to $306 million.
Software analytics companies are being supported by President Donald Trump’s government efficiency campaign, including layoffs and contract cuts. Palantir’s US government revenues rose to $426 million, to 53% from the same period last year.
“It was a sudden, upward climb. The prominent confluence of the arrival of language models, the chips needed to power them, and our software infrastructure,” Carp wrote in a letter to shareholders.
During the quarter, Palantir said it closed 66 transactions of at least $5 million and 42 transactions of at least $10 million. The total contract amount has increased 140% from last year to $2.27 billion.
Net income rose to about $326.7 million (13 cents per share), up 144% from $134.1 million, or 6 cents per share a year ago.
Palantir’s stock has more than doubled this year as investors bet on the company’s AI tools and contract agreements with the government.
Its market value accelerated to over $379 billion, and was listed on the top 20 most valuable US companies, surpassing Salesforce, IBM and Cisco, and joined the top 10 high-tech companies in the US by market capitalization. The stock hit a new high on Monday.
Last week, the company also secured a $10 billion software and data contract with the US Army.
At that size, investors will have to pay a large multiple to buy stocks.
According to Factset, the stock currently trades 276 times forward revenues. Tesla is the only top 20 with a triple digit ratio at 177.
