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Key Takeaways
Palantir reports second-quarter earnings after Monday's closing bell.
Analysts expect revenue and earnings to grow from the year-ago period. Investors will be watching for growth in Palantir's commercial segment.
The company could provide investors with insights about the demand for its Artificial Intelligence Platform.
Palantir Technologies (PLTR) is set to report second-quarter earnings after the closing bell on Monday with investors likely to be watching for commercial segment growth and updates about the demand for the data analytics company's artificial intelligence (AI) platform.
Palantir's revenue is projected to be $653 million, according to estimates compiled by Visible Alpha, which would represent a more than 22% increase from the year-ago period. Net income is expected to be $94.83 million or 4 cents per share, an increase from the second quarter of 2023.
Analyst Estimates for Q2 2024 | Q1 2024 | Q2 2023 | |
Revenue | $653 million | $634.34 million | $533.32 million |
Diluted Earnings Per Share | 4 cents | 4 cents | 1 cent |
Net Income | $94.83 million | 105.53 million | $28.13 million |
Key Metric: Commercial Revenue Growth
Palantir will report revenue driven by commercial and government customers, with investors likely watching for sustained growth in the company's commercial segment.
Analysts expect commercial revenue to be $305.2 million, accounting for almost half (47%) of the company's projected total revenue. This would represent 32% growth from the year-ago period.
Citi analysts said that momentum in Palantir's commercial segment could offset uncertainty in the government side of the business and drive long-term growth.
Business Spotlight: AI Platform Demand
Palantir has benefited from the AI boom as demand for its AI platform drives growth in both its commercial and government segments. The company could provide updates on how it plans to sustain this momentum next week.
The platform "remains the biggest driver across the commercial and government sectors as this continues to be the main way [Palantir] adds new and existing customers to its pipeline," Wedbush analysts wrote. (The bullish analysts have previously called the company the "Messi of AI.")
Palantir shares finished Thursday down 3%. They're still up more than 50% this year.
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