Palantir’s (PLTR) fourth quarter outlook came in above Wall Street’s expectations Monday despite some analyst concerns over impact from the ongoing US government shutdown.
Palantir said it foresees revenue of just over $1.3 billion for the fourth quarter, ahead of the $1.2 billion projected by Wall Street analysts tracked by Bloomberg. The defense tech firm expects to see an adjusted operating income between $695 million and $699 million for the period, more than the roughly $575 million expected.
The company also lifted its full year revenue guidance to $4.4 billion from its previous $4.15 billion outlook.
The stock rose more than 3% in after-hours trading immediately following the results.
Palantir sells its artificial intelligence software to businesses and governments in the US and abroad. Its tech does everything from supply chain analysis to surveillance and identifying military targets. The firm’s deals with the Israeli military and ICE have drawn public backlash.
Palantir’s third quarter results also topped analyst estimates. Its adjusted earnings per share of $0.21 was ahead of the $0.17 expected by Wall Street and more than double its EPS of $0.10 in the third quarter of 2024.
The defense tech firm reported revenue of $1.18 billion for the three months through Sept. 30, a 63% increase from the previous year and above the $1.09 billion expected by Wall Street analysts tracked by Bloomberg.
Read more: Live coverage of corporate earnings
Driving that revenue beat was Palantir’s business in the United States. Its revenue from US government contracts jumped 52% to $486 million, above the $471 million expected. The company’s US commercial segment, meanwhile, saw revenue soar 121% year-over-year to $397 million, higher than the projected $342 million.
In a letter to shareholders Monday, CEO Alex Karp called Palantir’s US commercial business “an absolute juggernaut.”
The company’s past two quarterly reports also beat Wall Street’s expectations on the top and bottom lines, but led to mixed results for the stock due to weakness in the international business.
Shares are up more than 170% for the year.
Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.
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