Palantir beats revenue forecasts and raises its full-year outlook

what happened

According to Stocktwits, Palantir's third-quarter revenue climbed 96% to $2.31 billion, ahead of the $2.18 billion analysts expected. Net profit rose to $1.13 billion from $475.6 million a year earlier, and adjusted earnings came in at $0.44 per share against an expected $0.41.

The U.S. commercial business overtook government sales for the first time, growing 148% to $984 million, while U.S. government revenue rose 96% to $953 million. The company signed 212 deals worth $2.9 billion and raised full-year revenue guidance to $8.53–8.534 billion, above the $8.21 billion analysts had penciled in.

Despite the strong print, the shares fell nearly 3% overnight. They were roughly flat year to date as of the last close, and Stocktwits notes that the drop may reflect worries about the stock's high valuation.

why it matters

The report suggests demand for Palantir's AI software is growing faster than expected, yet the market is not rushing to re-rate the stock. The share reaction points to investor concern about valuation rather than the underlying numbers.

market impact

Palantir shares: strong results and a higher outlook support the stock, but its high valuation weighs on it

• ↔PLTR mixed — strong results and a raised outlook support the price, while the high valuation and overnight drop weigh on it

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