Palantir shares surge as AI strategy gains traction; CEO Karp silences skeptics

“The company closed on approximately $1 billion in total contract value as it continues to acquire new customers and expand existing contracts through AIP, delivering solutions at scale while capitalizing on the unprecedented opportunity in enterprise AI,” Ives added.

However, RBC Capital reiterated its “underperform” rating and $9 price target on Palantir shares as it viewed the results as mixed.

“International Commercial continued to struggle with macroeconomic headwinds in Europe,” the Canadian bank noted. “On the other hand, profitability was solid and ahead of recent trends.”

Most analysts were impressed with Palantir’s results.

“In light of the company’s accelerating growth and rising profitability, I maintain my buy rating for the stock,” said Gary Alexander, an analyst at Seeking Alpha.

“The notion that the current macroeconomic climate and a possible recession could impact deal closings may be true for other software companies, but that is not true for Palantir,” he added.

Palantir CEO Alex Karp expressed confidence in the company he built as it generates increasing revenue from commercial and government customers.

“Of course, we had many, many naysayers all along. We had people who thought we would never be profitable … now we have more than seven quarters of profitability,” Karp said on a conference call about financial results.

Karp has demonstrated determination in the work his company has performed for the U.S. government and its allies under defense contracts.

“And finally, the world is on the brink of something that could be very serious — a series of violent interactions in the Middle East,” Karp said. “And needless to say, at Palantir, we know where we stand and we are very supportive of America and its allies in the Middle East, including Israel.”