FILE PHOTO: The logo of U.S. software company Palantir Technologies is seen in Davos, Switzerland, May 22, 2022. REUTERS/Arnd Wiegmann/File Photo

Palantir lifts annual revenue forecast on robust US government demand

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May 4 : Palantir Technologies raised its annual revenue forecast and beat estimates for quarterly results on Monday, a sign of growing demand for its data analytics software from the U.S. government and commercial clients.

The rising adoption of artificial intelligence tools in modern warfare has boosted demand for software platforms developed by companies such as Palantir that help defense departments analyze data and make real-time targeting decisions.

Palantir's Maven AI system, a command-and-control software platform that analyzes battlefield data and identifies targets, is set to become an official program of record for the Pentagon, locking in long-term use across the U.S. military.

The company now expects fiscal 2026 revenue to be between $7.65 billion and $7.66 billion, compared with its prior expectations of $7.18 billion to $7.20 billion.

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"The United States remains the center, the constant core, of our business. And that business is erupting," CEO Alex Karp said in a letter to shareholders on Monday.

Palantir's U.S. government segment sells data analytics and AI software to defense and intelligence agencies, while its U.S. commercial business provides enterprise AI platforms that help corporations integrate data and automate operational decisions.

Revenue rose 85 per cent to $1.63 billion for the first quarter ended March 31, exceeding LSEG-compiled analysts' average estimate of $1.54 billion.

Palantir said its revenue from U.S. commercial customers jumped 133 per cent to $595 million, while revenue from U.S. government customers rose 84 per cent to $687 million.

The company reported adjusted earnings per share of 33 cents in the first quarter, beating estimates of 28 cents.

Shares of the company were down 1.5 per cent in extended trading. The stock has fallen around 18 per cent this year.

Chief Financial Officer David Glazer reiterated on a post-earnings call that the company's expenses are expected to ramp up in 2026 "as we remain committed to investing in the product plan and the most elite technical talent."

Last month, Palantir secured a $300 million contract with the U.S. Department of Agriculture.

The company forecast second-quarter revenue of $1.797 billion to $1.801 billion, above estimates of $1.68 billion.

Source: Reuters

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