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The
stock rose above $170 Tuesday after breaking previous records
four times this year in the global artificial intelligence race.
The previous closing high for the stock was set this week at
$160.66.
Since going public in 2020 when it posted a $1.17 billion annual
loss, the artificial intelligence software company has swung
swiftly to a profit and sales are booming. Profit rose 33% to
$327 million in the second quarter.
Its $1 billion quarterly revenue haul was fueled by a 53% spike
in government sales, despite massive spending cuts under
President Donald Trump and his Department of Government
Efficiency, once led by the world’s richest man Elon Musk.
“DOGE has had zero negative impact on Palantir’s U.S. government
business, which achieved its fastest growth rate since the
second quarter of 2021,” wrote William Blair analysts Louie
DiPalma and Bryce Sandberg. “Palantir is clearly benefiting from
AI industry momentum across its government and commercial
customer bases.”
The company also recorded a 93% jump in business sales. Overall
U.S. revenue surged 68% to $733 million.
Late Monday, Palantir raised its annual revenue expectations to
between $4.14 billion and $4.15 billion. It also raised its U.S.
commercial revenue guidance to more than $1.3 billion, which
would mean that Palantir achieved a growth rate of at least 85%.
“This was a phenomenal quarter,” CEO Alex Karp said in a
statement accompanying the earnings release. “We continue to see
the astonishing impact of AI leverage.”
Karp believes AI will benefit everyone, saying during a call
with industry analysts on Monday that Palantir is, “bullish on
all aspects of American life, including and especially people in
the blue collar."
He said Palantir wants to “arm the working class or blue collar
workers with AI agency enhancing skills,” and said that the
company will reach out to labor leaders to help familiarize
workers with the technology.
“People with less than a college education are creating a lot
value and sometimes more value than people with a college
education using our product,” Karp said.
Palantir, headquartered in Denver, specializes in software
platforms that pull together and analyze large amounts of data.
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