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By Claudia Assis

Advertising side gets hurt in part because of Google AI Overviews

Barry Diller, IAC’s chairman. The bulk of IAC’s revenue comes from the media division, People Inc., that saw revenue shrink 2% year over year.

Media and internet holding company IAC Inc., led by digital-media mogul Barry Diller, late Monday reported revenue below Wall Street’s expectations and pointed to a growing concern among others in the same business.

That’s the heightened presence of Google AI Overviews, a relatively new feature of Alphabet Inc.’s (GOOGL) (GOOG) Google Search that appears at the very top of query results.

Shares of IAC (IAC) dropped more than 8% in the extended session Monday, after ending the regular trading day up 1.1%.

AI Overviews uses generative AI to provide users with an overview of a topic, but may bury sites where people would ordinarily seek information about an issue.

IAC’s media brands include instantly recognizable print and digital names such as People, Food & Wine and Better Homes & Gardens, to name a few. The company reported third-quarter revenue of $590 million, or $10 million less than the FactSet consensus for the quarter.

The bulk of its sales come from the media division, People Inc. That saw revenue shrink 2% year over year to $430 million.

That reflects a 3% drop in advertising revenue, part of a downward pressure mostly due to “the impact of the increasing prominence of Google AI Overviews on Google search sessions,” IAC said. Higher advertising rates and higher premium advertising softened that, the company said.

Alphabet said last week its Google Search business has remained strong. On a post-earnings call, Chief Executive Sundar Pichai said that overall queries and commercial queries have continued to increase thanks to AI Overviews and Google’s AI Mode. Google Search revenue rose more than 14% year on year to $56.57 billion in the third quarter.

IAC, for its turn, also reported a wider-than-expected quarterly loss: It lost 27 cents a share in the third quarter, whereas analysts polled by FactSet had expected a loss of 24 cents a share.

People Inc. is the “heart of our future” alongside IAC’s investment in casino operator MGM Resorts (MGM), CEO Diller said. Diller doesn’t seem afraid of AI: He also praised People Inc.’s licensing deal with Microsoft AI.

People Inc. has signed a deal with Microsoft Corp. (MSFT) to be one of the publishers building Microsoft’s Publisher Content Marketplace, a two-sided content marketplace that would compensate publishers for use of their content by AI. Microsoft’s AI Copilot assistant would be the first buyer, the company has said.

-Claudia Assis

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

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  11-03-25 2019ET
Copyright (c) 2025 Dow Jones & Company, Inc.

Tokyo, Japan, November 4, 2025 – NEC Corporation (NEC; TSE: 6701) has concluded a Technology Partner Program Agreement with Siemens Industry Software Inc. (Siemens) to expand global solutions in the field of 3D robot simulations. Through this agreement, the two companies will further consolidate their strengths, accelerate the deployment of solutions internationally, and mutually strengthen their resources to support the continued growth of customers.

NEC has developed a digital twin solution, which leverages advanced technologies to help manufacturing customers optimize worksite operations, improve productivity, and transition to fact-driven management. This solution is offered under NEC’s value creation model “BluStellar” (*1).

As a leading technology company, Siemens promotes the realization of digital enterprises and provides a suite of software that enables manufacturers worldwide to rapidly create value.

Through this agreement, the two companies will jointly develop a robot teaching automation solution that combines the “NEC Robot Task Planning” digital twin service with Siemens’s “Process Simulate” software for 3D robot simulations (*2). Together, the companies will use their multifaceted marketing initiatives, such as joint seminars and exhibitions, as well as their own sales channels to accelerate deployment of the solution throughout global markets.

Traditionally, the creation of plans for coordinating the motion of multiple robots was done manually by skilled engineers through a process known as teaching. This process is extremely complex, and in manufacturing sites, designing the motion plan for robots to produce a single product requires substantial cost. As a result, there are many delays in launching production lines that use multiple robots.

The NEC Robot Task Planning software is equipped with a proprietary algorithm that optimizes the coordinated operation of multiple robots and automatically generates robot motion plans using AI. The Process Simulate software from the Tecnomatix® portfolio is a globally adopted 3D robot simulator that enables virtual teaching without interrupting production lines.

As part of this collaboration, NEC Robot Task Planning has been seamlessly integrated into the Process Simulate user interface, allowing users to execute robot motion plan creation with a single click, significantly reducing the workload required for teaching. This capability complements the currently available automatic path planning and robot programming tools available in Process Simulate. In addition, it shortens the production line setup period, optimizes cycle time, enables fact-driven management, and facilitates the sharing and transfer of operational know-how that is often dependent on individual expertise.

By Christine Ji and Britney Nguyen

The software company is boosting its outlook, and its CEO is cheering gains for retail investors

Palantir posted third-quarter results on Monday.

Palantir Technologies Inc. broke records once again with its third-quarter earnings as the company’s artificial-intelligence offerings drove aggressive business growth, but the stock fell in after-hours trading.

Palantir (PLTR) on Monday posted its best-ever results, reporting $1.18 billion in revenue and adjusted earnings of 21 cents per share for the quarter that ended Sept. 30. The results surpassed Wall Street expectations – analysts polled by FactSet had been anticipating $1.1 billion and 17 cents, respectively.

The company raised its full-year guidance as a result of its momentum. Palantir now anticipates around $4.40 billion in revenues for the 2025 fiscal year, up from the $4.14 billion to $4.15 billion the company had guided for in the second quarter.

Overall revenue grew 63% year over year, with much of the growth being driven by Palantir’s biggest segment, U.S. commercial, which saw sales rise by 121% year over year. Ryan Taylor, Palantir’s chief revenue and legal officer, told MarketWatch that Palantir is prioritizing the domestic market, which now comprises 75% of the business’s total revenue.

The stock initially climbed 7% in Monday’s extended session, but soon gave up those gains, and ended down 4.3%.

“As we have seen thus far this earnings season, earnings beats aren’t necessarily being rewarded owing to extended positioning and lofty expectations already baked into price,” Jake Behan, head of capital markets at Direxion, said in a note. “At this valuation, even great numbers don’t move the needle. The bar is sky high and not an easy one to clear, even for Palantir.”

The latest quarter was the fourth in a row in which Palantir’s U.S. commercial business was larger than its U.S. government segment, David Glazer, Palantir’s chief financial officer and treasurer, told MarketWatch.

Meanwhile, Palantir’s Artificial Intelligence Platform, or AIP, continues to see strong demand. Taylor said that’s because it’s “the only platform delivering transformational impact in this market.”

Palantir has been a controversial name on Wall Street due to its rich valuation – the stock trades at a forward price-to-earnings ratio of 253 times, according to FactSet – and its reliance on government contracts. Only 24% of the analysts covering Palantir polled by FactSet assign the stock a buy or buy-equivalent rating. But what Palantir lacks in institutional support, it makes up for with its fervent retail following, which CEO Alex Karp emphasized as a key part of what distinguishes Palantir from other software businesses.

“People who are most excited about our results in America now are average Americans,” Karp told MarketWatch.

In a shareholder letter, he said Palantir “has made it possible for retail investors to achieve rates of return previously limited to the most successful venture capitalists in Palo Alto.” Shares closed Monday above $207, after opening at $10 when the company conducted its 2020 direct listing.

The company’s earnings beat sends a strong message of continuing demand for Palantir’s products. Prior to the earnings report, Citi analyst Tyler Radke questioned whether Palantir could surpass the high expectations set by last quarter’s results, which saw the company crossing $1 billion in quarterly revenue for the first time.

Read: Here’s Palantir’s ‘secret sauce,’ which these analysts say can boost the stock even more

-Christine Ji -Britney Nguyen

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

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  11-03-25 2016ET
Copyright (c) 2025 Dow Jones & Company, Inc.