Palantir Technologies (Nasdaq: PLTR) posted a record third‑quarter earnings report, but its shares fell about 3% shortly after the announcement.
Q3 earnings highlights
Revenue reached $2.31 billion, up 96% from the same quarter a year earlier and above Wall Street’s estimate of $2.18 billion. Adjusted earnings per share were $0.44, surpassing the forecast of $0.41 and reflecting a 109.5% year‑over‑year increase. Net income and free cash flow rose to $1.128 billion and $1.216 billion, respectively, marking increases of 137% and 125%.
U.S. commercial revenue grew to $984 million, a 148% rise, while U.S. government revenue climbed to $953 million, up 96%.
Business mix shift
The company’s revenue mix shifted from a reliance on its Gotham platform for government contracts toward greater contribution from the Foundry data operating system and the AIP AI platform serving private corporations.
Guidance and valuation
Palantir raised its full‑year 2026 revenue guidance to a range of $8.530 billion to $8.534 billion, indicating about 91% year‑over‑year growth. Despite the strong outlook, the stock trades at a forward price‑to‑earnings ratio of roughly 97x, well above the typical 15‑20x range for comparable companies.
Market reaction
Before the earnings release, the stock was down 3.13% at $178.34. After the report, shares briefly rose as much as 4% before ending the session with a net decline of about 3.11%. Analysts cited broader AI sector risk aversion and the high valuation multiple as factors.
Contract activity
Palantir secured 64 contracts worth at least $10 million each in the quarter, bringing total contract value to $2.92 billion. However, the pace of new contract signings showed limited growth.
Analyst outlook
Average analyst recommendations remain “overweight,” with a mean target price of $216.38.
