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AI this, AI that. We’ve heard it all from companies in their quarterly releases about the technology, with some seemingly shoving the term into their commentaries as a buzzword. But the obvious question remains – is anybody actually benefiting? The answer is yes.

Several companies, including Palantir (PLTR - Free Report) and Meta Platforms (META - Free Report), are actually reaping the benefits of AI, as reflected by their quarterly results. Let’s take a closer look at each.

Palantir Reports Record Profit

Palantir’s quarterly release was filled with positivity, exceeding both earnings and revenue expectations. Revenue soared 27% year-over-year, whereas EPS climbed 200%. The company builds software that empowers organizations to effectively integrate their data, decisions, and operations.

The company’s platform continues to be highly attractive, reflected by 41% year-over-year customer growth. Impressively, Palantir closed over 27 deals worth $10 million throughout the period, further reflecting the snowballing demand.

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Though strength was broad, the company’s US commercial sales were notably bright, growing 55% year-over-year alongside an 83% customer increase. The CEO delivered a notably bullish statement following the print, stating the following:

In Q2 2024, we generated $159 million in revenue in the U.S. commercial market alone, an increase of 55% from the same period the year before. The growth rate was even more significant, at 70% year-over-year, when excluding strategic commercial contracts. And the persistent and unbridled demand for our software, for an effective enterprise platform that makes artificial intelligence capabilities useful to large institutions, shows no sign of relenting.

Analysts have adjusted their current year sales expectations accordingly following the robust release, with the now $2.8 billion expected suggesting a 21% jump.

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The stock remains a prime selection for those seeking AI exposure, further reinforced by its favorable Zacks Rank #2 (Buy) rating.

Meta Platforms Delivers Stunning AI Statement

Mega-cap giant Meta Platforms was one of the few Magnificent 7 members to see a positive reaction to its quarterly results, with the company again exceeding both earnings and revenue expectations. The stock remains a favorable Zacks Rank #2 (Buy), with its earnings outlook reflecting bullishness across the board.

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The company delivered a stunning statement in the release, with Mark Zuckerberg saying, "We had a strong quarter, and Meta AI is on track to be the most used AI assistant in the world by the end of the year."

He continued, "We've released the first frontier-level open source AI model, we continue to see good traction with our Ray-Ban Meta AI glasses, and we're driving good growth across our apps."

Meta also raised its CapEx outlook into a band of $37-$40 billion ($35-$40 billion prior) to support its artificial intelligence roadmap.

The valuation picture for Meta Platforms stock remains attractive, with the recent 21.5X forward 12-month earnings multiple in line with the five-year median and well beneath five-year highs of 31.5X. In addition, the current PEG ratio works out to 1.1X, reflecting that investors are paying a fair price for the forecasted growth.

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Bottom Line

While companies continue to seemingly throw around the AI buzzword in their quarterly releases, several, including Palantir (PLTR - Free Report) and Meta Platforms (META - Free Report), are actually benefiting from AI, with the trends expected to continue.

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