Alex Karp, chief executive officer of Palantir Technologies Inc., walks to the morning session at the Allen & Co. Media and Technology Conference in Sun Valley, Idaho, US, on Wednesday, July 10, 2024.
David Paul Morris | Bloomberg | Getty Images
Palantir shares closed up 11% on Thursday after the company announced a partnership with Microsoft to sell secure cloud, analytics and artificial intelligence capabilities to the U.S. defense and intelligence communities.
Palantir, which works closely with governments to provide software to visualize army positions, among other services, will use the partnership to launch its products — such as Gotham, Foundry, Apollo and AIP — on Microsoft’s cloud products for government agencies.
Palantir reported earnings earlier in the week, raising its annual revenue forecast to between $2.74 billion and $2.75 billion, from $2.68 billion to $2.69 billion. That was above LSEG consensus estimates of a $2.7 billion forecast.
CEO Alex Karp said in a letter to shareholders at the time that the company’s trailing 12-month revenue in its U.S. government business, which includes intel and defense agencies, surpassed $1 billion for the first time. The company said it earned 54% of its revenue from government clients during the second quarter.
Microsoft said the partnership would allow U.S. defense and intelligence organizations to build AI tools for action plans and logistics, among other things.
Palantir, co-founded by billionaire Peter Thiel, will work with Microsoft to provide trial services and training sessions.
Palantir shares are up about 70% year to date.