Palantir hits first $1 billion in quarterly sales amid U.S. spending cuts

Palantir Technologies shares appeared to be on track to hit a new all-time high on Tuesday after the company surpassed the $1 billion (£0.75bn) mark in quarterly revenue for the first time and revised its full-year guidance higher.

The stock has risen above $170 (£127) before the start of trading, which could be a new high for the company, which has hit four new all-time highs this year. The previous record was set on July 25, when trading closed at $158.80 (£119.53).

Since its IPO in 2020, when the AI software developer posted an annual loss of $1.17bn (£0.88bn), the company has managed to stabilise its financial performance. Net profit increased by 33% to $327m (£246m) in the second quarter.

The billion-dollar quarterly revenue was made possible by a 53 percent increase in government contracts, despite massive budget cuts during Donald Trump's presidency and the activities of the Department of Government Effectiveness (Doge), formerly headed by Elon Musk.

“Doge hasn’t hindered Palantir’s public sector expansion in the U.S., which has seen its fastest growth since Q2 2021,” William Blair experts Louis DiPalma and Bryce Sandberg note. “The company is clearly benefiting from the boom in the AI industry, serving government and corporate clients.”

The organisation also reported a 93 per cent increase in sales, with total revenue in the US market up 68 per cent to $733m (£551.7m).

Earlier this week, Palantir revised its 2025 annual revenue forecast upwards to between $4.14bn and $4.15bn (£3.12bn). It also raised its US commercial target to over $1.3bn (£0.98bn), an 85 per cent increase.

“This has been a remarkable quarter,” CEO Alex Karp said in a statement accompanying the financial report. “We are seeing tremendous impact from our AI efforts.”

Mr. Karp believes AI technology will benefit everyone. In a conference call with analysts, he emphasized that Palantir “sees opportunities in all areas of American life, with a particular focus on blue-collar workers.”

The CEO said he intends to “equip manufacturing employees with digital tools for professional development through AI,” noting plans to collaborate with trade unions to integrate technology into work processes.

“Non-academic professionals demonstrate comparable, and often superior, performance in using our solutions compared to those with degrees,” added Alex Karp.

The Denver-based company develops software solutions for collecting and analyzing massive amounts of data.

Sourse: breakingnews.ie

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