Palantir (NYSE:PLTR) shares soared nearly 14% in the pre-market session today after the enterprise software provider announced better-than-anticipated third-quarter results and upped its full-year outlook. EPS of $0.07 landed a tad better than estimates by $0.01. Additionally, revenue of $558 million increased by 16.8% year-over-year, exceeding estimates by nearly $2.5 million.
During the quarter, Palantir’s Commercial revenue increased by 23% to $251 million, and Government revenue increased by 12% to $308 million. The number of customers increased by 34%, with the number of U.S. Commercial customers rising by 37% to 181. Impressively, Palantir generated an adjusted free cash flow of $502 million and notched a fourth consecutive quarter of expanding adjusted operating margins.
Looking ahead to Fiscal year 2023, the company now expects revenue to be in the range of $2.216 billion to $2.220 billion, alongside anticipated adjusted income from operations in the range of $607 million to $611 million.
For the fourth quarter, Palantir sees revenue landing between $599 million and $603 million. Adjusted income from operations for the quarter is expected to be between $184 million and $188 million.
What Is the Target Price for Palantir?
Overall, the Street has a Hold consensus rating on Palantir. Following a nearly 73% surge in Palantir shares over the past year, the average PLTR price target of $13.88 implies a potential downside of 7% in the stock.
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