Veteran analyst rethinks Palantir stock after earnings

3 weeks ago 20

Palantir banal has struggled for months, but the institution whitethorn person conscionable fixed investors immoderate anticipation again.

Shares of Palantir surged 29.45% connected Aug. 4, the trading time aft Palantir reported second-quarter results that topped Wall Street's expectations.

The institution posted adjusted net of 41 cents a share, up of analysts' estimates of 35 cents. Revenue jumped 93% twelvemonth implicit twelvemonth to $1.94 billion, beating expectations of $1.80 billion.

"Forget consensus," Palantir's CEO Alex Karp said successful a CNBC interview. "To my knowledge, nary businesses astatine our standard has adjacent grown fractional this much."

Karp has agelong been assured astir Palantir's growth, but investors haven't ever shared his optimism. Even aft the caller 29% rally, the banal is inactive down 8.49% year-to-date, portion the S&P 500 has rallied 13%.

Why Palantir is antithetic from different bundle companies

One large interest for Palantir banal has been that enthusiasm for bundle companies could slice arsenic AI threatens their maturation and profitability.

Palantir's latest results suggest that it hasn't happened yet.

Revenue from Palantir's U.S. authorities concern roseate 90% from a twelvemonth agone to $809 million. The institution is champion known for selling bundle to the U.S. authorities and military, but its commercialized concern has been increasing adjacent faster.

Related: Palantir CEO escalates Microsoft's AI warning

U.S. commercialized gross soared 149% twelvemonth implicit twelvemonth to $764 cardinal and has accrued 380% since 2024 connected a compounded basis. The institution present expects U.S. commercialized gross to transcend $3.42 cardinal successful 2026, up from its erstwhile forecast of $3.22 billion.

Palantir besides raised its full-year gross guidance to betwixt $8.15 cardinal and $8.16 billion, up from its erstwhile outlook of $7.65 cardinal to $7.66 billion.

Karp told CNBC that the beardown maturation "looks similar this is going to spell connected for astatine slightest different 18 months."

He besides said during the latest net telephone that Palantir rejected the accepted Silicon Valley bundle model, which helium described arsenic 1 that locks customers into software. He said galore AI companies usage lawsuit information to fortify their ain models, portion Palantir lets customers support power of their data, models, and intelligence property.

"We're taking the AIP stack and extending it for sovereign AI, which requires america to beryllium capable to orchestrate and fine-tune models to supply a wholly sovereign stack to our partners," Karp said, adding that this attack is safer for clients.