Palantir Revenue Forecast to Rise 84% as Markets Test Returns on AI Spending
Key Facts
Investors are turning their attention to Palantir’s results, due Monday, November 2, followed by AMD’s on Tuesday, November 3, in a week that will test technology companies’ ability to turn AI-related spending into growth and returns. Zacks estimates Palantir’s third-quarter revenue at $2.17 billion, up 84% year over year, putting the company’s growth in focus ahead of its report. That comes after results from Amazon and signals from Intel fueled concerns about the scale of capital spending, supply constraints and the computer market. Palantir closed at $184.85 on October 30, while Apple closed at $343.28 on the same day. Palantir said it would release results after the U.S. market close, with a webcast discussion scheduled to begin at 5 p.m. Eastern time.
The Zacks estimate represents a sharp increase from revenue a year earlier, but remains a forecast ahead of the company’s actual results. Investors will focus on Palantir’s third-quarter figures and its forward guidance when the report is released, as well as its ability to sustain the growth reflected in forecasts. The after-market timing gives investors a chance to review the results before they are discussed in the webcast scheduled for Monday evening. The available evidence did not establish an Apple earnings date, while the open Super Micro page showed no documented date; the confirmed dates in this schedule therefore center on Palantir and AMD. Apple’s results cited in the previous record relate to its fiscal third quarter, which preceded the upcoming fiscal fourth quarter.
In its latest quarterly results cited here, Apple reported revenue of $109.4 billion in the fiscal third quarter, up 16% year over year, and diluted earnings per share of $2.02, up 29%. The company said gross margin was 50.1%, including a positive impact of about 2 percentage points from tariff refunds. Those refunds also added $0.11 to diluted earnings per share, according to Apple’s statement. The figures are from June results and do not represent the fiscal fourth-quarter results investors are awaiting. The comparison helps distinguish previously reported performance from expectations for upcoming disclosures.
The company attributed the trend mainly to increased spending on property and equipment tied to AI investments. The following day, Nasdaq futures fell more than 2%, and Amazon shares dropped 7.2% in premarket trading, according to Reuters. The news agency linked investor pressure to the cash-flow report and capital-spending signals. The market response thus focused on the cost of capital expansion and liquidity alongside the company’s business growth.
In the chip sector, Intel’s decline did not follow a quarterly revenue miss: revenue was roughly in line with expectations, while adjusted profit topped estimates. But the company signaled weaker fourth-quarter guidance, citing supply constraints and concerns about the computer market. Reuters reported that the stock fell 23% in extended trading on October 29, then 25% in premarket trading on October 30. Chief Financial Officer David Zinsner also said the computer market slowdown could continue at least through the first half of next year. Reuters added that weak demand and higher memory costs are weighing on the market, putting Intel’s operating outlook under scrutiny alongside upcoming company results.
Concerns about spending spread to broader technology stocks, as investors questioned whether returns on AI investment would catch up with the scale of spending. Alphabet shares fell 12.6% on Wall Street on October 29, while Nasdaq 100 futures declined 1.4% on October 30, according to Reuters. On Friday morning, Nasdaq futures were down more than 2%, alongside a decline in Amazon shares before the market opened. Reuters reported that these concerns drove investors toward safe-haven assets. The moves place upcoming results from Palantir and AMD in the broader context of scrutiny over expected growth, capital spending and returns on AI investments.