Palantir Technologies Inc. has revealed a new $1 billion buyback initiative alongside its latest quarterly results, aligning with expectations. Despite this, Palantir’s stock declined by more than 2% during premarket trading on Monday.
The software company achieved its third consecutive quarter of GAAP profitability, posting a second-quarter net income of $28 million, equivalent to 1 cent per share. This marked a substantial improvement from the year-ago period, in which Palantir faced a net loss of $179.3 million, or 9 cents per share.
Revenue saw an uptick, reaching $533 million from the previous $473 million and aligning with the FactSet consensus. The company’s commercial revenue amounted to $232 million, marking a 10% increase from the prior year. In addition, government revenue reached $302 million, reflecting a 15% growth.
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The announcement also included Palantir’s approval of a stock-buyback program, amounting to $1 billion. This move comes on the heels of the company’s $285 million adjusted free cash flow in the first half of the year and a concluding balance sheet for the second quarter showing $3.1 billion in cash and equivalents.
Looking ahead, Palantir forecasts revenue in the range of $553 million to $557 million for the third quarter, alongside anticipated GAAP profitability. For its fourth quarter, the company projects GAAP net income. Palantir’s full-year revenue projections stand at over $2.212 billion, slightly surpassing analyst expectations.
