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These AI Stocks Posted Robust Results: Time to Buy?
Key Takeaways
The AI trade has caught attention again following strong results from PLTR and TEM.
Both companies enjoyed supercharged growth, with their outlooks remaining bullish.
The next big AI release to watch for remains beloved NVIDIA.
Earnings season continues to move rapidly, with many companies unveiling quarterly results daily. So far, the period has been positive, though it’s worth noting that estimates for the current period (Q2) have fallen in recent weeks.
But throughout the Q1 cycle so far, several companies deeply involved in the AI frenzy – Palantir (PLTR - Free Report) and Tempus AI (TEM - Free Report) – posted results that had investors pleased, with each seeing bullish post-earnings reactions.
Let’s take a closer look at each report.
PLTR Again Posts Stellar Results
Palantir continued to fire on all cylinders throughout its latest period, with the company again experiencing serious growth. Sales shot 39% higher year-over-year, with the company also raising its current year sales outlook in a big way.
As shown below, the company’s sales growth has been outstanding over recent periods, a reflection of the red-hot demand PLTR has been enjoying.
Image Source: Zacks Investment Research
Notably, customer count grew nearly 40% year-over-year and 8% sequentially. Palantir also booked its highest U.S. commercial total contract value throughout the period ($810 million), which grew a staggering 180% year-over-year.
The favorable U.S. contract performance helped drive the 55% year-over-year climb in its U.S. revenue, with U.S. commercial and government revenue improving by 71% and 45% year-over-year, respectively.
Analysts have already revised their current year sales expectations for the stock following the release, with the current $3.9 billion Zacks Consensus estimate up nearly 20% over the last year. The company’s sales are now forecasted to climb 37% following the updated guidance, continuing its growth trajectory nicely.
Image Source: Zacks Investment Research
Tempus AI Sales Surge Higher
Tempus AI is a technology company leading the adoption of AI to advance precision medicine and patient care. Like PLTR, the company enjoyed serious growth, with sales of $255.7 million climbing 75% year-over-year.
Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
Margin improvement also led to notable benefits, with quarterly gross profit of $155.2 million doubling from the year-ago period. Adding to the positivity, the company also announced multi-year collaborations with AstraZeneca and Pathos, which are expected to result in roughly $200 million in data licensing and model development fees over the next three years.
Notably, its Genomics segment saw its sales grow 90% year-over-year, with its Data and services revenue of $61.9 million up 43.2% from the same period last year. And to top off the robust results, the company increased its FY25 revenue guidance to roughly $1.3 billion, reflecting a massive 80% growth rate year-over-year.
Shares saw a nice boost post-earnings, with TEM shares up nearly 50% overall just over the past month.
Image Source: Zacks Investment Research
Bottom Line
We continue to wade through the 2025 Q1 cycle, which has overall been positive. Growth has been strong, though it’s critical to note that tariff concerns have caused downward pressure on earnings estimates for the current (Q2) and coming periods.
Still, several AI-related stocks have posted robust results throughout the period, a list that includes Palantir (PLTR - Free Report) and Tempus AI (TEM - Free Report) .
Given these results, both stocks reflect great opportunities to ride the artificial intelligence frenzy, a theme that’s likely just in its early innings.
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These AI Stocks Posted Robust Results: Time to Buy?
Key Takeaways
Earnings season continues to move rapidly, with many companies unveiling quarterly results daily. So far, the period has been positive, though it’s worth noting that estimates for the current period (Q2) have fallen in recent weeks.
But throughout the Q1 cycle so far, several companies deeply involved in the AI frenzy – Palantir (PLTR - Free Report) and Tempus AI (TEM - Free Report) – posted results that had investors pleased, with each seeing bullish post-earnings reactions.
Let’s take a closer look at each report.
PLTR Again Posts Stellar Results
Palantir continued to fire on all cylinders throughout its latest period, with the company again experiencing serious growth. Sales shot 39% higher year-over-year, with the company also raising its current year sales outlook in a big way.
As shown below, the company’s sales growth has been outstanding over recent periods, a reflection of the red-hot demand PLTR has been enjoying.
Image Source: Zacks Investment Research
Notably, customer count grew nearly 40% year-over-year and 8% sequentially. Palantir also booked its highest U.S. commercial total contract value throughout the period ($810 million), which grew a staggering 180% year-over-year.
The favorable U.S. contract performance helped drive the 55% year-over-year climb in its U.S. revenue, with U.S. commercial and government revenue improving by 71% and 45% year-over-year, respectively.
Analysts have already revised their current year sales expectations for the stock following the release, with the current $3.9 billion Zacks Consensus estimate up nearly 20% over the last year. The company’s sales are now forecasted to climb 37% following the updated guidance, continuing its growth trajectory nicely.
Image Source: Zacks Investment Research
Tempus AI Sales Surge Higher
Tempus AI is a technology company leading the adoption of AI to advance precision medicine and patient care. Like PLTR, the company enjoyed serious growth, with sales of $255.7 million climbing 75% year-over-year.
Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
Margin improvement also led to notable benefits, with quarterly gross profit of $155.2 million doubling from the year-ago period. Adding to the positivity, the company also announced multi-year collaborations with AstraZeneca and Pathos, which are expected to result in roughly $200 million in data licensing and model development fees over the next three years.
Notably, its Genomics segment saw its sales grow 90% year-over-year, with its Data and services revenue of $61.9 million up 43.2% from the same period last year. And to top off the robust results, the company increased its FY25 revenue guidance to roughly $1.3 billion, reflecting a massive 80% growth rate year-over-year.
Shares saw a nice boost post-earnings, with TEM shares up nearly 50% overall just over the past month.
Image Source: Zacks Investment Research
Bottom Line
We continue to wade through the 2025 Q1 cycle, which has overall been positive. Growth has been strong, though it’s critical to note that tariff concerns have caused downward pressure on earnings estimates for the current (Q2) and coming periods.
Still, several AI-related stocks have posted robust results throughout the period, a list that includes Palantir (PLTR - Free Report) and Tempus AI (TEM - Free Report) .
Given these results, both stocks reflect great opportunities to ride the artificial intelligence frenzy, a theme that’s likely just in its early innings.