Palantir is set to release its third-quarter financial results after the market closes on Monday. Here's what you need to know.
NET INCOME: The company is expected to report a profit of $954.3 million, according to analysts polled by FactSet. That compares with a profit of $475.6 million a year earlier.
ADJUSTED EARNINGS: Analysts expect Palantir to report adjusted earnings of 41 cents a share, compared with 21 cents a year prior.
REVENUE: Revenue is expected to grow to $2.18 billion from $1.18 billion.
Shares of Palantir were recently up 0.4% at $184.49. The stock has gained around 5% year-to-date.
WHAT TO WATCH:
- Palantir reports on the heels of a bruising week for technology stocks, after disappointing earnings from Amazon, Alphabet, and Intel led a broad selloff across the sector. Palantir is likely to report strength across its underlying business, Oppenheimer analysts have projected, with total government growth potentially surpassing 65% and U.S. commercial growth of 140% or more. But Palantir's third-quarter revenue beat may be smaller than previous quarters, Morgan Stanley analysts recently wrote, while expectations for the stock are high. The more important bar for the company, the analysts write, will be fourth-quarter guidance and how it stacks up against Street consensus.
- The report will also precede Anthropic's widely anticipated initial public offering, expected later this month. Palantir executives have been some of the most outspoken critics of frontier AI labs like Anthropic, and have sought to position Palantir to capture demand from businesses uneasy about sharing their data with third-party model providers. "As enterprises learn about the implications of exposing their knowledge, data and intellectual property to third-party AI vendors, they are growing more concerned about having control over their compute, models, data stack and alpha," JPMorgan analysts wrote in a recent note initiating an overweight rating on Palantir's stock. Investors will likely be listening for commentary on enterprises' evolving AI usage and the impacts on Palantir's growth.
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