What happened: Shares of Palantir (PLTR) climbed nearly 30% on Tuesday.
What’s behind the move: The company released fiscal second-quarter results that surpassed analyst projections and increased its full-year guidance.
The firm now anticipates full-year revenue of $8.16 billion, up from previous forecasts of $7.65 billion to $7.66 billion.
Palantir reported adjusted earnings of $0.41 per share for the second quarter, beating expected by analysts.
“This quarter was otherworldly: our U.S. commercial revenue grew 149% year-over-year, our overall revenue grew 93% year-over-year,” Palantir’s CEO Alex Karp said.
“The sovereign AI revolution makes us very optimistic about the future,” he added.
Revenue from the US government rose 90% compared to the previous year and 18% sequentially.
The company announced it finalized 220 deals valued at $1 million or more, including 98 contracts worth at least $5 million and 73 deals exceeding $10 million.
“Record highs across the board,” Platantir chief revenue officer and chief legal officer Ryan Taylor told analysts during the earnings call.
The company also generated $1.22 billion in adjusted free cash flow, a key metric for the AI sector, which outperformed the $1 billion estimate.
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200.50-0.47(-0.23%)
At close: October 15 at 4:00:00 PM EDT
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What else you need to know: Palantir has contended that the enterprise AI market is dividing into two groups: those spending millions on model tokens only to receive “AI slop,” and those achieving measurable returns by utilizing the company’s core infrastructure layer.
“In contrast, enterprises that are not using Palantir are seeing their token meters spinning endlessly, just to get slop without any correlation to value,” Taylor said.
Earlier this year, the Pentagon designated Palantir’s Maven Smart System as an official program of record, securing the company’s role in US military AI initiatives for the foreseeable future.
Palantir stock has declined roughly 3% year to date, having been impacted by the broader software sector sell-off earlier this year.
<a s competitive advantage in its orchestration tool, which allows users to switch between AI models with minimal friction.
Luria maintains a Buy rating on the stock with a price target of $175.
