Palantir raises 2024 revenue forecast again on robust AI adoption; shares surge

Palantir Technologies has seen remarkable growth, capitalizing on the surge in generative AI demand. Its advanced AI platform, which facilitates code testing, debugging, and scenario evaluation, is attracting more businesses. Reflecting this momentum, Palantir has raised its 2024 revenue forecast to between $2.805 billion and $2.809 billion, an increase from its previous range of $2.742 billion to $2.750 billion.

As one of the major players in the AI stock rally, Palantir’s shares have surged over 140% this year, significantly outperforming the S&P 500's 20% gain since its inclusion in September. The company also revised its annual guidance for adjusted income from operations, setting a range of $1.05 billion to $1.06 billion, up from the prior forecast of $966 million to $974 million.

According to CFO David Glazer, the increased demand for AI is translating into both top-line and bottom-line growth. While Palantir is expanding its commercial client base, a substantial portion of its revenue continues to come from government contracts, further supporting its positive financial outlook.