Palantir Reports Record Q2, Surpassing $1 Billion in Revenues
Palantir Technologies Inc. (PLTR) achieved a milestone by reporting over $1 billion in revenue for the second quarter of 2023, representing a 14% increase sequentially and a 48% increase year over year. Earnings per share (EPS) were $0.16, a 78% rise compared to the previous year, exceeding Wall Street expectations of $939 million in revenue and an EPS of $0.14. The U.S. commercial segment contributed significantly, generating $306 million in revenue, which accounted for 31% of total revenue and marked a 20% increase from the previous quarter.
Full-Year Revenue Guidance Raised
Palantir has raised its full-year revenue forecast to between $4.142 billion and $4.150 billion, up from the prior estimate of $3.89 billion. For Q3, the company expects revenues to be between $1.083 billion and $1.087 billion, surpassing Wall Street’s estimate of $983 million. The company’s remaining performance obligation (RPO) increased by 77% to $2.42 billion, indicating strong future growth potential.
Investment Outlook
Despite the robust growth, Palantir’s current price-to-earnings (P/E) ratio of 308.1 appears overvalued compared to the industry average of 43.56. Investors are advised to consider waiting for a price correction before investing, as Palantir maintains a Zacks Rank #3 (Hold).
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