Alex Karp, chief executive officer of Palantir Technologies Inc., speaks during the AIPCon conference in Palo Alto, California, US, on March 13, 2025.
Palantir reported quarterly results that topped analysts' estimates and issued better-than-expected guidance for the fourth quarter, attributing much of its strength to artificial intelligence.
The stock, which has soared 25-fold in the past three years, initially rose in extended trading before falling about 4%.
Here's how the company did compared to LSEG estimates:
Earnings per share: 21 cents adjusted vs. 17 cents expected
Revenues: $1.18 billion vs. $1.09 billion expected
Palantir, which builds analytics tools for large companies and government agencies, said it expects revenue of about $1.33 billion for the current period, exceeding the $1.19 billion expected by analysts, according to LSEG.
The optimistic guidance comes even as the government shutdown stretches into its second calendar month, and potentially threatens some key contracts. Revenue in Palantir's U.S. government business grew 52% in the quarter from a year ago to $486 million.
Government sales, particularly from military agencies, have been central to Palantir's ongoing ascent. Over the years, Palantir has steadily beat out major legacy government contractors, and recently landed a deal worth up to $10 billion contract with the U.S. Army.
Palantir has also faced criticism over how its tools are being used by government agencies, including U.S. Immigration and Customs Enforcement.
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