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Shares of Palantir (PLTR+2.06%) rose over 20% on Tuesday morning after the data analytics software platform reported third quarter earnings and outlook far above Wall Street’s expectations.
The company’s shares were up by around 15% during pre-market trading on Tuesday and surpassed 20% after the open. Palantir’s shares have risen over 200% so far this year.
For the third quarter, Palantir reported revenues of $726 million — up 30% from the previous year, and an increase of 7% from the previous quarter. The company was expected to report revenues of $705 million for the quarter, according to analysts’ estimates compiled by FactSet (FDS+0.46%). U.S. revenues were $499 million for the quarter — up 44% from a year ago, and a 14% increase from the previous quarter.
“We absolutely eviscerated this quarter, driven by unrelenting AI demand that won’t slow down,” Alex Karp, co-founder and chief executive of Palantir, said in a statement. “This is a U.S.-driven AI revolution that has taken full hold. The world will be divided between AI haves and have-nots. At Palantir, we plan to power the winners.”
The company, which counts the U.S. government as a major customer, reported that U.S. government revenues rose by 40% from the previous year to $320 million, while U.S. commercial revenue grew 54% year over year to $179 million.
Palantir set fourth-quarter revenue expectations between $767 million and $771 million. For the full year, the company raised its revenue guidance to between $2.805 billion and $2.809 billion.
In September, Palantir was added to the S&P 500, which Karp said in a letter to shareholders was “made possible by the strength of our business and expanding demand for our software.”