Palantir stock popped more than 8% Tuesday after the software analytics provider lifted its full-year outlook, boosted by the artificial intelligence
CEO Alex Karp called the earnings results a “once in a generation, truly anomalous quarter” during an earnings call with analysts.
“We’re very proud and we’re sorry that our haters are disappointed, but there are many more quarters to be disappointed, and we’re working on that too,” he added.
U.S. revenues grew 68% year over year $733 million, while U.S. commercial revenues nearly doubled to $306 million.
Palantir’s U.S. government revenues rose 53% from the year-ago period to $426 million as the company continues to benefit from President Donald Trump‘s focus on efficiency.
The company’s revenues grew 48% and topped $1 billion in quarterly revenue for the first time ever. That surpassed the $940 million in revenues forecast by analysts polled by LSEG.
“‘I’ve been cautioned to be a little modest about our bombastic numbers, but honestly, there’s no authentic way to be anything but have enormous pride and gratefulness about these extraordinary numbers,” he said.
Adjusted earnings came in at 16 cents per share and ahead of the 14-cent-per-share estimate. Net income jumped 144% to about $326.7 million, or 13 cents per share. That’s up from $134.1 million, or 6 cents per share a year ago.
Palantir also upped its full-year guidance.
The company now expects revenues to range between $4.142 billion and $4.150 billion. That’s up from its previous forecast calling for $3.89 billion to $3.90 billion.
Palantir shares have soared more than 120% this year and the company’s market cap topped $400 billion due to ongoing AI tailwinds and a bet on its contracts with the government.
Last week, the company joined the list of 20 most valuable U.S. companies after joining the top 10 U.S. tech firms club in May.
However, investors are paying a hefty multiple for a company that makes a fraction of revenue relative to many of its peers. Shares currently trade 277 times forward earnings.
Analysts have raised concerns about the company’s growth and valuation.
Jefferies analyst Brent Thill maintained an underperform rating following the results, citing a “disconnected between valuation and achievable growth.”
“While PLTR carries a rich valuation premium and remains a high-risk investment, the one-of-a-kind growth [plus] margin model puts it into a unique category of one that warrants a premium, in our view,” wrote Piper Sandler’s Brent Bracelin, who is overweight on shares.
WATCH: Palantir reports $1 billion in revenue for the first time
Palantir YTD stock chart.
