Palantir Technologies (PLTR.O) raised its full-year revenue forecast for the second time in 2024, citing strong demand for its AI-powered data analytics from both government and commercial clients. The company now expects $4.14 billion to $4.15 billion in revenue, up from its prior outlook of $3.89 billion to $3.90 billion and surpassing analysts’ estimates of $3.90 billion.
The boost comes as U.S. defense spending shifts toward commercial tech providers, with Palantir securing a potential $10 billion Army contract over the next decade. Government sales surged 53% year-over-year to $426 million in Q2, accounting for 42% of total revenue, which hit $1 billion—beating expectations.
AI and Defense Drive Growth
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Government demand has accelerated under the Trump administration’s national security focus, with Palantir emerging as a lead contractor for large-scale defense projects.
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Commercial AI adoption is also rising, with U.S. business revenue now projected at $1.30 billion+, up from $1.18 billion.
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Shares jumped 4% in after-hours trading, extending a 100%+ gain this year as investors bet on Palantir’s AI and defense dominance.
Strong Earnings Momentum
The company also beat Q2 adjusted earnings estimates and issued an upbeat Q3 sales forecast. Analyst Gil Luria (D.A. Davidson) noted Palantir has “accelerants on both sides”—government and commercial—positioning it for sustained growth.
With AI integration expanding across sectors and Pentagon budgets favoring agile tech firms, Palantir’s upward revisions signal continued momentum in 2024.
