- PALANTIR Technologies raised its annual revenue forecast for the third time, and the company now expects 2024 revenue to be between $2.805 billion and $2.809 billion
- The company has been one of the biggest beneficiaries of the rise in AI-related stocks, with its shares up more than 140 percent so far this year
What happened
Palantir Technologies on Monday (Nov. 4) raised its annual revenue forecast for 2024 for the third time. It is driven by strong demand for its AI data analytics solutions. The company now expects 2024 revenue to range from $2.805 billion to $2.809 billion. It is up from its previous forecast of $2.742 billion to $2.75 billion. At the same time, Palantir also raised its annual forecast range for adjusted operating profit to about $1.05 billion to $1.06 billion.
In addition, the surge in demand for Palantir’s services has had a direct impact on its stock price performance. The company’s shares rose by about 8 percent in after-hours trading. Its shares are up more than 140 per cent so far this year.
Palantir Technologies is betting that governments will increase spending and businesses will seek to adopt artificial intelligence (AI) technology, leading to greater demand for its software services. Chief Financial Officer David Glazer said, “The demand for AI is driving revenue growth and flowing to the bottom line”. The software giant revealed that its AI-driven products are gaining significant adoption, especially in the government and large enterprise markets.
Also read: Palantir raises 2024 revenue forecast again on robust AI adoption; shares surge
Also read: Palantir Sees 30% Revenue Jump in Q3 2024, Raises Revenue Guidance Again
What it’s important
Palantir’s upward revision of its annual revenue forecast signals a shift in how AI technology is applied across industries. The company’s ability to harness AI is not just a success but signals broader tech trends. As AI adoption accelerates, companies in defense, healthcare, finance, and manufacturing increasingly turn to data analytics. This helps improve efficiency and drive decision-making.
This broader trend is also occurring among smaller companies, not just industry giants like Palantir. A good example is Tempus, a technology-driven healthcare company focused on using artificial intelligence to analyze clinical and molecular data to make real-time decisions in cancer treatment. By leveraging AI to sift through complex data sets, such as genetic information, treatment plans, and patient histories, Tempus enables doctors to make smarter, more timely decisions.
As Palantir continues to capitalize on the demand for AI in the government and enterprise sectors, smaller companies like Tempus are also demonstrating how AI adoption can be a key driver of innovation across industries. For investors, it’s a clear indicator that AI remains a major growth driver in tech, potentially reshaping the financial landscape.
