Palantir revenue rockets past forecasts
Revenue at Palantir rocketed past analyst forecasts as the AI-powered firm ramped up commercial and government deals.
The US tech firm posted revenue of $1.6bn (£1.2bn) in the first three months of the year, above investor expectations of $1.5bn and 85 per cent ahead of last year.
The firm upped its revenue guidance to $7.6bn for the year “driven by our confidence in an accelerating U.S. market,” said Alex Karp, co-founder and chief executive, adding that the feat had been achieved despite having a smaller headcount compared to two years ago.
“The key point is that this growth is not just about companies testing AI in small pockets – Palantir is increasingly being used in real-world operations, where the stakes are high, and customers need AI to deliver clear, measurable results,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.
“Management struck a very confident tone, pointing to strong US demand, expanding customer commitments and a sharp uplift in full-year guidance.
“That all supports the idea that Palantir has become one of the clearest ways to play the shift from AI hype to implementation.”
Palantir becomes political hot topic in the UK
The results from Palantir come as the tech company found itself dragged into the UK political arena amid renewed scrutiny over its relationships with government departments, including its £330m NHS data platform contract.
Last month, the company’s UK chief executive, Louis Mosley, was forced to respond to a series of claims made about the company by Green party leader Zack Polanski, including a number of erroneous claims about the company’s management and its operations.
Responding to concerns about Palantir’s role in NHS England, Mosley said the firm has no more access to NHS data “than Microsoft has to the contents of your Word documents”, adding: “We don’t have access to patient medical records”.
He also cited operational outcomes linked to the company’s software, including 110,000 additional operations and seven per cent more patients finding out whether they have cancer within 28 days.
The company also holds contracts with the Ministry of Defence (MoD), and is used by several UK police forces, while the Metropolitan Police is exploring wider use of AI tools in investigations.
Palantir’s shares have risen by around 20 per cent over the past year, though the stock dipped slightly in after-hours trading following the publication of its latest earnings.
“Palantir looks to be one of the best pure plays on applied AI, but investors need to recognise that expectations are already very high,” Britzman said.