Palantir Technologies on Thursday reported third-quarter earnings and revenue that topped Wall Street targets as commercial market growth came in above expectations. PLTR stock surged as guidance met views amid buzz over artificial intelligence.
Released before the market open, Palantir earnings for the quarter ending Sept. 30 were 7 cents on an adjusted basis, vs. 1 cent a year earlier
Revenue rose 17% to $558 million, the maker of data analytics software said.
Analysts had predicted earnings of 6 cents a share on revenue of $556 million.
Palantir Earnings: Commercial Growth Beats
Denver-based Palantir said government revenue rose 12% to $308 million, missing estimates for $321 million. But commercial market revenue climbed 23% to $251 million vs. estimates of $234 million.
On the stock market today, PLTR stock popped 20.4% to close at 17.97.
For the current quarter ending in December, Palantir forecast revenue of $601 million at the mid-point of guidance vs. estimates of $600 million.
The software maker raised its full-year 2023 revenue outlook to $2.216 billion to $2.220 billion, up from $2.212 billion.
Further, PLTR stock had advanced 127% thus far in 2023 heading into the Palantir earnings report.
PLTR Stock: Government Renewals
The company offers three platforms: government agencies use Palantir Gotham; Palantir Metropolis is geared to banks, financial services firms and hedge funds; large companies buy Palantir Foundry.
In addition, the software maker has expanded into the health care, energy and manufacturing sectors.
Meanwhile, one issue for PLTR stock is that large U.S. government contracts are coming up for renewal.
Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
