Palantir, the Denver-based data analytics firm, shattered expectations by surpassing $1 billion in quarterly revenue for the first time, reporting $1.01 billion—a 48% year-over-year surge. The company’s commercial segment in the U.S. skyrocketed by 93%, while government contracts grew by 53%, fueled by deals with the military and Space Force. Net income nearly tripled to $326.7 million, with earnings per share doubling to $0.14, far exceeding forecasts. The stock surged to an all-time high, gaining 7% intraday, as analysts revised price targets upward following a landmark $10 billion defense contract.
Skepticism Amid Stellar Performance
Despite the explosive growth, some analysts remain cautious, citing the stock’s steep valuation (P/E over 600) and its 2024 rally. Management raised its annual revenue guidance to $4.15 billion, backed by a 77% increase in backlogged contracts. While CEO Alex Karp positions Palantir as an “AI operating system for modern enterprises,” questions linger about sustainability. The market’s response—a blend of euphoria and wariness—will hinge on whether Palantir can maintain its momentum.
