Palantir (NYSE: NYSE:PLTR), a leading AI platform firm, witnessed a significant 21% surge in its stock price today, following the release of its third-quarter earnings which topped Wall Street consensus. The company's Q3 revenue reached $558 million, surpassing predictions by $2 million. This growth was primarily driven by a 23% year-on-year increase in its smaller commercial operations segment and a steady 12% sales growth in its main government business.
The company also revised its fourth-quarter forecast upwards to between $599 million and $603 million, with an expected adjusted income from operations at a midpoint of $186 million. This bullish Q4 outlook has garnered substantial attention from traders.
Over the past year, Palantir's customer base expanded by 34%, indicating a robust uptake of its AI products among new clients. The company's full-year revenue forecast now ranges between $2.216 billion and $2.22 billion, with an estimated adjusted income from operations at a midpoint of $609 million.
Palantir would be among the most shorted stocks heading into the earnings season, the company's performance has exceeded expectations. In tandem with Palantir's success, both the S&P 500 and NASDAQ Composite also advanced more than 1%.
InvestingPro Insights
InvestingPro's real-time data reveals that Palantir (NYSE: PLTR) holds a market cap of $37.66B USD and a P/E ratio of -786.52. The company's revenue for the last twelve months as of Q2 2023 was $2045.01M USD, showing a growth of 17.23%. The gross profit for the same period stood at $1618.54M USD, reflecting an impressive gross profit margin of 79.15%.
InvestingPro Tips highlights that Palantir holds more cash than debt on its balance sheet and its net income is expected to grow this year. Despite not being profitable over the last twelve months, analysts predict the company will turn profitable this year. However, it's worth noting that the stock price movements are quite volatile, which potential investors should consider.
These insights are just a glimpse of the comprehensive metrics and tips available on InvestingPro, which offers a total of 13 additional tips for Palantir. These tips can provide valuable guidance for investors considering this stock.
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