Palantir books its first $1 billion in quarterly sales and dodges DOGE axe
The stock rose above $170 Tuesday after breaking previous records four times this year in the global artificial intelligence race. The previous high for the stock was set just over a week ago when its stock closed at $158.80.
Since going public in 2020 when it posted a $1.17 billion annual loss, the artificial intelligence software company has swung swiftly to a profit and sales are booming. Profit rose 33% to $327 million in the second quarter.
Its $1 billion quarterly revenue haul was fueled by a 53% spike in government sales, despite massive spending cuts under President Donald Trump and his Department of Government Efficiency, once led by the world's richest man Elon Musk.
'DOGE has had zero negative impact on Palantir's U.S. government business, which achieved its fastest growth rate since the second quarter of 2021,' wrote William Blair analysts Louie DiPalma and Bryce Sandberg. 'Palantir is clearly benefiting from AI industry momentum across its government and commercial customer bases.'
The company also recorded a 93% jump in business sales. Overall U.S. revenue surged 68% to $733 million.
Late Monday, Palantir raised its annual revenue expectations to between $4.14 billion and $4.15 billion. It also raised its U.S. commercial revenue guidance to more than $1.3 billion, which would mean that Palantir achieved a growth rate of at least 85%.
'This was a phenomenal quarter,' CEO Alex Karp said in a statement accompanying the earnings release. 'We continue to see the astonishing impact of AI leverage.'
Karp believes AI will benefit everyone, saying during a call with industry analysts on Monday that Palantir is, 'bullish on all aspects of American life, including and especially people in the blue collar."
He said Palantir wants to 'arm the working class or blue collar workers with AI agency enhancing skills,' and said that the company will reach out to labor leaders to help familiarize workers with the technology.
'People with less than a college education are creating a lot value and sometimes more value than people with a college education using our product,' Karp said.
Palantir, headquartered in Denver, specializes in software platforms that pull together and analyze large amounts of data.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
26 minutes ago
- Globe and Mail
US Open singles champs to get a record $5-million in 2025
Prize money at the US Open will rise to nearly US$85-million across all competitions this year, including a record US$5-million each to the women's and men's singles champions, and total player compensation is jumping 20 per cent to US$90-million, the most in tennis history. The U.S. Tennis Association announced the payouts Wednesday for the year's last Grand Slam tournament, which begins with the new mixed doubles event and its US$1-million top check on Aug. 19-20. Singles competition starts on a Sunday for the first time — Aug. 24 — as those brackets expand from 14 days to 15. The increases at Flushing Meadows — where last year's total compensation was US$75-million — come as the sport's leading players have been in discussions with each of the four major tournaments in a bid to receive a higher percentage of revenues at the US Open, Wimbledon, French Open and Australian Open. Novak Djokovic, Coco Gauff and 2024 US Open champions Aryna Sabalenka and Jannik Sinner were among 20 players who signed a letter sent to the heads of the four Grand Slam events in March seeking more prize money and a greater say in what they called 'decisions that directly impact us.' Since then, some players have held talks with the majors. The previous high amount for a US Open singles championship was US$3.85-million in 2019, before decreasing during the COVID-19 pandemic. This year's US$5-million check represents a 39 per cent hike from last year's US$3.6-million. The same percentage increase was applied to the singles runners-up, who get US$2.5-million each. Semi-finalists will earn US$1.26-million, a 26 per cent rise. At Wimbledon, which ended last month, prize money went up about seven per cent to about US$73-million at the exchange rate when the All England Club announced its player payments. The singles champions were paid about US$4-million apiece. In New York, the winning teams in women's and men's doubles will receive US$1-million, a new high for those events at the US Open, where total prizes for qualifying are going up to US$8-million, a 10 per cent increase. The US$85-million in 2025 US Open prize money includes singles, doubles, qualifying and wheelchair events. Wednesday's news comes after the USTA said in May that its main arena, Arthur Ashe Stadium, would be overhauled as part of a US$800-million project touted as the 'largest single investment' in US Open history.
Canada News.Net
an hour ago
- Canada News.Net
Tesla issues $29B stock grant to Musk after court blocked pay
AUSTIN, Texas: Tesla has awarded Elon Musk a US$29 billion stock grant in an effort to retain its high-profile CEO and put to rest months of uncertainty surrounding his compensation, just as the company navigates sagging sales, falling profits, and shareholder anxiety over Musk's political ties. The grant, disclosed in a regulatory filing this week, gives Musk 96 million restricted shares in what Tesla described as a "first step, good faith" move to keep him focused on the company amid his growing commitments to ventures like SpaceX and xAI. "Rewarding Elon for what he has done and continues to do for Tesla is the right thing to do," the company said, citing a $735 billion increase in Tesla's market value since 2018. Tesla noted that Musk has not received pay in years, after a Delaware court twice struck down his 2018 compensation plan, most recently in December 2023, when the court ruled the plan had been devised through "sham negotiations" with board members who lacked independence. Tesla has appealed that decision and formed a special committee in April to reevaluate Musk's compensation. To unlock the new grant, Musk must pay $23.34 per share—the exercise price under the original 2018 plan. The latest award comes as Tesla tries to calm concerns among shareholders following a 25 percent slide in its stock price this year. The drop has been fueled in part by backlash to Musk's alignment with President Donald Trump and his increasing political activity, including time spent in Washington pushing for deep federal government cuts. At the same time, Tesla faces growing competition from U.S. automakers and aggressive rivals in China. In the most recent quarter, the company's profits tumbled from $1.39 billion to $409 million, falling short of analysts' already-lowered expectations. Still, Tesla insists Musk is central to its long-term success. The company pointed to his leadership as a key reason for continued investor confidence, even as his distractions outside of Tesla have tested that confidence. "Musk remains Tesla's big asset and this comp issue has been a constant concern of shareholders once the Delaware soap opera began," wrote Wedbush analyst Dan Ives in a client note. "We believe this grant will now keep Musk as CEO of Tesla at least until 2030 and remove an overhang on the stock."
CTV News
an hour ago
- CTV News
Toronto's El Mocambo will continue as concert venue: new owner
Our Lady Peace play to a packed crowd as they mark the re-opening of the iconic Toronto music venue The El Mocambo on Saturday, October 30, 2021. THE CANADIAN PRESS/Chris Young A spokesperson for the new owner of the El Mocambo says concerts will continue to be held at the storied Toronto music venue after former owner Michael Wekerle defaulted on nearly $56 million in loans tied to the property. In an interview with CTV News Toronto on Wednesday, the director of operations for the company that bought the 77-year-old club says it will be 'nothing too different' from its current iteration. 'The intent is to do it better. To manage operations with a little bit more rigor,' Neil Kerr said on behalf of Cyrus Madon, a longtime executive at Brookfield Asset Management, whose purchase of the venue's assets was approved by an Ontario court on Tuesday. 'Cyrus, he's pretty passionate about music, it's a passion that he's probably had for 50 years… He and his wife are strong supporters of Canadian musicians and charities. There are certainly going to be some charitable functions that are held at the venue as well. I think it's a very, very positive story.' Kerr did not disclose the purchase price of the property. The sale is expected to close in the coming weeks. Wekerele, who became a household name after his time as a star on CBC's 'Dragons' Den,' bought the El Mocambo in 2014 for $3.8 million and spent $35 million to improve the space. The businessman's passion project officially reopened in 2021 after a to-the-studs renovation and delays brought on by the COVID-19 pandemic. Court documents filed earlier this year showed Wekerle had defaulted on nearly $56 million in loans linked to the space. A spokesperson for the El Mocambo told The Canadian Press that Wekerle is not involved in the deal to sell the property. In a statement to The Canadian Press, Wekerle called the sale of the venue 'very important' to its future. 'I endorsed the purchaser and feel he is like-minded and will preserve the integrity of the El Mo,' he said. The small, two-storey concert venue fell into financial trouble in the 90s and early 2000s after playing host to legendary acts like The Rolling Stones and U2 in the 70s and 80s. After closing and re-opening under a number of owners, it finally shuttered. It's unclear when the venue will reopen under the new ownership. With files from The Canadian Press
