Shares of Palantir Technologies catapulted higher Tuesday after the company's chief executive outlined plans to capitalize on rising business interest in artificial intelligence. The lift to PLTR stock also was the result of first-quarter earnings and revenue that topped Wall Street targets.
PLTR stock launched 23.4% to close at 9.55 on the stock market today.
For the period ended March 31, Palantir earnings on an adjusted basis were 5 cents. Also, revenue rose 18% to $525 million, the maker of data analytics software said. The maker of data analytics software reported results after the market close Monday.
Analysts had predicted earnings of 4 cents a share on revenue of $506 million. Further, Denver-based Palantir said government revenue rose 20% to $289 million, in line with estimates. Meanwhile, commercial revenue climbed 15% to $236 million, topping views for $217 million.
Palantir Chief: Demand Is 'Without Precedent'
In a letter to shareholders, Chief Executive Alex Karp said the software maker is well-positioned amid booming interest in artificial intelligence tools.
"The depth of engagement with and demand for our new Artificial Intelligence Platform (AIP) is without precedent," he said. "We are currently mobilizing our company and sales teams in order to convert this organic and inbound interest into an expansion of our reach within the market."
He added: "AIP enables enterprises across the commercial and government sectors to leverage the power of large language models on their own privately held data sets. The first iteration of the platform will be made available to select customers this month."
Palantir Stock: Sales Guidance Light
Using generally accepted accounting principles, or GAAP, Palantir said it had net income of $17 million in the March quarter.
For the current quarter ending in June, Palantir predicted revenue of $530 million vs. estimates of $537 million.
PLTR stock had advanced 15% in 2023 heading into the Palantir earnings report.
Palantir stock holds a weak Relative Strength Rating of 26 out of a best-possible 99, according to IBD Stock checkup.
Also, Palantir gets nearly 60% of its revenue from government agencies. They use Palantir software for intelligence gathering, counterterrorism and military purposes. In addition, the software maker has expanded into the health care, energy and manufacturing sectors.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
