What happened: Palantir (PLTR) stock surged 7% in after-hours trading on Monday.
What’s behind the move: The company reported fiscal second quarter results that beat analyst expectations and raised its full-year guidance.
The company sees full-year revenue of $8.16 billion versus prior estimates for $7.65 billion to $7.66 billion.
The company posted adjusted earnings of $0.41 per share in its Q2, versus Wall Street estimates of $0.35. Revenue came in at $1.94 billion, compared to expectations of $1.8 billion.
“This quarter was otherworldly: our U.S. commercial revenue grew 149% year-over-year, our overall revenue grew 93% year-over-year,” said Palantir’s CEO Alex Karp.
“The sovereign AI revolution makes us very optimistic about the future,” he added.
U.S government revenue grew 90% year-over year.
What else you need to know: Earlier this year, Palantir’s Maven Smart System became an official Pentagon program of record, locking in a bigger role for the company in US military AI projects for years to come.
Palantir stock is down more than 30% year to date, as the company was caught up in the AI disruption scare earlier this year that hit the entire software complex.
Wall Street is still bullish on the stock, with 22 analyst Buy ratings, 9 Hold and 2 Sell.
Last month, D.A. Davidson’s Gil Luria upgraded the stock, noting that Palantir has a key advantage in its orchestration tool — the ability to switch between AI models with minimal disruption.
Luria has a Buy rating on the stock and a $175 price target.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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