Palantir Technologies, the data-crunching juggernaut, saw its stock jump over 8% on Tuesday after dropping a quarterly report that had investors doing a double-take.
The company, riding the artificial intelligence wave, smashed expectations with a cool $1 billion in revenue for the first time. CEO Alex Karp, barely containing his glee, called it a “once in a generation, truly anomalous quarter” during an earnings call that felt more like a victory lap.
Karp, with a grin you could probably see from space, didn’t hold back on the self-congratulation. “I’ve been cautioned to be modest about our bombastic numbers,” he said, “but honestly, there’s no authentic way to be anything but proud.”
He even tossed a playful jab at the naysayers, apologizing to “our haters” for the stellar results and promising more disappointment in future quarters.
The numbers were indeed eye-popping. U.S. revenues skyrocketed 68% year-over-year to $733 million, with commercial revenues nearly doubling to $306 million.
Government contracts, juiced by President Donald Trump’s efficiency push, climbed 53% to $426 million. Palantir’s total revenue growth hit 48%, leaving Wall Street’s $940 million forecast in the dust.
Earnings were no slouch either. Adjusted earnings landed at 16 cents per share, beating the 14-cent estimate. Net income soared 144% to $326.7 million, or 13 cents per share, up from $134.1 million a year ago.
Not content with just crushing it, Palantir raised its full-year revenue forecast to a range of $4.142 billion to $4.150 billion. That’s a hefty bump from the previous $3.89 billion to $3.90 billion estimate. The company’s confidence is practically contagious, though some analysts are still wiping the skepticism off their glasses.
Palantir’s stock has been on a wild ride, soaring over 120% this year and pushing the company’s market cap past $400 billion. It’s now rubbing shoulders with the top 20 most valuable U.S. companies, having gatecrashed the top 10 U.S. tech firms in May.
Not bad for a company once known for its secretive government work, now flexing its AI muscles for all to see.
But not everyone’s popping champagne. Some analysts are raising eyebrows at Palantir’s valuation, with shares trading at a jaw-dropping 277 times forward earnings. Jefferies analyst Brent Thill slapped an underperform rating on the stock, muttering about a “disconnect between valuation and achievable growth.”
On the flip side, Piper Sandler’s Brent Bracelin is all in, calling Palantir’s growth-margin combo “one-of-a-kind.” He argues the company deserves its premium, even if it’s a bit like buying a Ferrari when you only need a minivan. The market, it seems, is betting big on Palantir’s AI prowess and its cozy government contracts.
The AI wave is clearly Palantir’s secret sauce. Its Artificial Intelligence Platform (AIP) is winning fans in both commercial and government sectors, helping clients turn data into decisions faster than you can say “algorithm.” The company’s knack for integrating large language models into practical applications has clients lining up like kids at an ice cream truck.
Government work remains a cornerstone. Palantir’s software is a go-to for agencies looking to streamline operations, especially under Trump’s efficiency drive. From tracking visas to powering military ops, Palantir’s tech is like the Swiss Army knife of government surveillance.
Commercial clients are also jumping on board. The company closed 66 deals worth at least $5 million and 42 deals topping $10 million in the quarter. That’s a 140% jump in contract value from last year, proving Palantir’s not just a government darling anymore.
Karp’s enthusiasm is hard to ignore. He’s been touting Palantir’s “warrior culture” and its ability to thrive under pressure, which sounds like the kind of pep talk you’d hear at a tech boot camp.
The company’s even planning to grow revenue while trimming its workforce from 4,100 to 3,600, a move Karp calls a “crazy, efficient revolution.”
Investors are eating it up, but some are wondering if the hype train’s moving too fast. The stock’s meteoric rise has made Karp one of the best-paid CEOs, with his holdings ballooning by $6.8 billion last year.
That’s enough to make anyone’s head spin, but Karp’s keeping his eyes on the prize: more AI, more contracts, more growth.
As Palantir continues its ascent, the market’s watching closely. Will it keep defying gravity, or is this AI-fueled rocket due for a reality check? For now, Karp’s grinning, the stock’s soaring, and Palantir’s haters are left scrambling for new complaints.
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