Palantir Earnings Top Estimates Thanks to AI Boost

Palantir posted better-than-expected financial results for the third quarter, getting a boost to its commercial business from its push into AI-powered analytics applications. But some investors may be disappointed by slower growth in the company’s government business.

Palantir said commercial revenue was up 23% to $251 million, well above the Street consensus forecast at $234 million. That includes a 33% increase in U.S. commercial business to $116 million—a 19% increase sequentially. CEO Alex Karp said in a letter to shareholders that the strength is attributable to “growing demand” for the company’s recently launched AI platform.

“Companies across industries in the United States are scrambling to deploy software platforms that will allow them to leverage the power of the latest large language models,” Karp wrote in the letter. “And we have built what they need.” Government revenue in the quarter was $308 million, up 12% from a year ago, but falling shy of Street consensus at $321 million. “It’s just a lumpy business,” Karp said. “We’re seeing unprecedented levels of inquiries for our products, and we’re optimistic that will break in our direction sometime in the near future.”

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

CVS Earnings Top Estimates but Stock Drops as Outlook Is Slashed AgainCVS revises lower its guidance range for diluted GAAP earnings per share for the third straight quarter.
Source: MarketWatch - 🏆 3. / 97 Read more »

Informatica Cuts Staff 10%, Sets New $200 Million Buyback, As Earnings Top EstimatesIt posted quarterly revenue of $408.6 million, up 10% from a year ago, and earned 27 cents a share, up four cents.
Source: MarketWatch - 🏆 3. / 97 Read more »

Airbnb Earnings Top Estimates, But Stock Slips on Light GuidanceAirbnb posted revenue of $3.4 billion, up 18% from a year ago.
Source: MarketWatch - 🏆 3. / 97 Read more »

Palantir earnings show AI traction, while company hits a milestone on profitsPalantir notches fourth quarter in a row of GAAP profitability, making the company eligible for S&P 500 inclusion
Source: MarketWatch - 🏆 3. / 97 Read more »

Wingstop’s stock pops 7% after earnings beat estimates by a wide marginCiara Linnane is MarketWatch's investing- and corporate-news editor. She is based in New York.
Source: MarketWatch - 🏆 3. / 97 Read more »

These companies are slashing earnings estimates, but the market may have sniffed that out alreadyThe S&P 500 was expected to see an earnings gain of 11% for the fourth quarter on Oct. 1, and that expectation is now down to 7.8%.
Source: CNBC - 🏆 12. / 72 Read more »