Palantir Technologies Reports Strong Q3 2024 Results, Raises Full-Year Guidance

Palantir Technologies Inc. (NYSE: PLTR) has released its Q3 2024 earnings report, showcasing robust financial performance and significant growth. The company reported a 30% year-over-year increase in revenue, reaching $726 million. This growth was driven by a 44% increase in U.S. revenue, which totaled $499 million. U.S. commercial revenue saw a 54% rise to $179 million, while U.S. government revenue increased by 40% to $320 million.

The company achieved GAAP net income of $144 million, representing a 20% margin, and GAAP EPS of $0.06. The customer count grew by 39% year-over-year, with 104 deals valued over $1 million closed during the quarter. This strong performance has led Palantir to raise its full-year guidance, projecting revenue between $2.805 billion and $2.809 billion and U.S. commercial revenue growth of at least 50%.

The market’s anticipation of Palantir’s earnings was high, given the company’s 140% AI-driven rally this year. Pre-earnings options volume indicated normal activity with puts leading calls 10:9, suggesting an expected move of around 12.4% in the share price post-earnings. However, the median move over the past eight quarters has been 17.8%.

Despite the positive earnings, Wall Street remains cautious, with the average target price implying a potential decline of more than 30% in the next 12 months. Investors are keen to see tangible results from the company’s AI initiatives to justify its premium valuation.

Cathie Wood, a notable investor, has also been in the spotlight for offloading Palantir stock ahead of the earnings report, further highlighting the market’s scrutiny of the company’s performance.