Palantir Technologies Inc (NYSE:PLTR) reported better-than-expected third quarter results, driven by record contract wins and the adoption of its AI-powered platform, and issued upbeat guidance.
For Q3, the data analytics firm reported revenue of $1.18 billion, surpassing analysts’ estimates of $1.09 billion, and adjusted earnings per share of $0.21, above expectations of $0.17.
GAAP net income came in at $476 million, representing a 40% margin, while adjusted income from operations reached $601 million, a 51% margin.
The company’s growth was driven by strong performance across both its commercial and government segments. US revenue rose 77% year-over-year to $883 million, with commercial revenue up 121% to $397 million and government revenue increasing 52% to $486 million.
Palantir also reported record-breaking contract activity, closing a total contract value of $2.76 billion, including $1.31 billion in US commercial deals, and saw its US commercial remaining deal value rise to $3.63 billion, up nearly 200% from a year ago. Customer count grew 45% year-over-year.
CEO Alex Karp highlighted the company’s Rule of 40, a metric used in the Software-as-a-Service sector to measure growth and profitability, which stood at 114%.
“These results make undeniable the transformational impact of using Artificial Intelligence Platform (AIP) to compound AI leverage,” Karp said. “We are yet again announcing the highest sequential quarterly revenue growth guide in our company’s history, representing 61% year-over-year growth.”
Looking ahead, Palantir expects fourth quarter revenue between $1.33 billion and $1.33 billion, well above analysts’ estimate of $1.19 billion.
The company also raised its full-year revenue forecast to nearly $4.4 billion, up from previous guidance of $4.14 billion to $4.15 billion.
Palantir shares edged 0.7% higher to $208 shortly after the release of its earnings report.