Palantir tops third-quarter revenue estimates on strong AI software demand

Nov 2 : Palantir Technologies forecast fourth-quarter revenue above Wall Street estimates on Monday, banking on strong demand for its data analytics software from the US government and commercial clients.

Demand for Palantir's software, which integrates and analyzes data from multiple sources, is growing as clients seek greater control over their data and AI models to safeguard sensitive information and maintain competitive advantage.

The company also raised its annual revenue expectations to between $8.530 billion and $8.534 billion, up from its prior estimates of between $8.150 billion and $8.158 billion.

It expects fourth-quarter revenue to be between $2.649 billion and $2.653 billion, above analysts' average estimate of $2.46 billion, according to data compiled by LSEG.

Shares of the company were last up 1.5 per cent in volatile extended trading.

In the third quarter, its revenue rose about 96 per cent to $2.31 billion, exceeding estimates of $2.18 billion.

"We have now essentially doubled our entire business since the same quarter last year," CEO Alex Karp said in a letter to shareholders.