TLDR
- Palantir delivered Q3 revenue of $1.18 billion versus $1.09 billion expected, with adjusted earnings of 21 cents per share beating the 17-cent consensus.
- The company boosted Q4 revenue outlook to $1.33 billion against $1.19 billion estimates and raised full-year projections to $4.4 billion.
- Government revenue jumped 52% to $486 million while commercial revenue more than doubled to $397 million.
- Shares declined 4-6% in extended trading despite the earnings beat, as the stock has already surged 170% in 2025.
- CEO Alex Karp stated that weak AI companies will “disappear very quickly” as market conditions tighten.
Palantir stock fell approximately 4% after hours and nearly 6% in Frankfurt trading on Tuesday. The decline came despite third-quarter results that comfortably exceeded analyst projections.
Palantir Technologies Inc., PLTR
The company reported quarterly revenue of $1.18 billion. Wall Street had anticipated $1.09 billion. Adjusted earnings per share landed at 21 cents, above the 17-cent forecast.
Year-over-year revenue climbed 63% from $725.5 million. This marked the second straight quarter Palantir crossed the $1 billion revenue threshold. Net income jumped more than threefold to $475.6 million versus $143.5 million in the prior year period.
Management increased guidance for the fourth quarter and full fiscal year. The company expects Q4 revenue around $1.33 billion, surpassing the $1.19 billion analyst estimate.
Raised Outlook Across Key Metrics
Full-year revenue projections now sit at $4.4 billion compared to Wall Street’s $4.17 billion estimate. Palantir also lifted its free cash flow forecast to a range of $1.9 billion to $2.1 billion.
The U.S. government segment generated $486 million in revenue, up 52% from last year. Defense contracts remain a cornerstone of Palantir’s business model. The company secured a deal potentially worth $10 billion with the U.S. Army.
The government shutdown entering its second calendar month poses potential risks. Yet government sales continue to drive substantial growth for the company.
Commercial Segment Shows Strong Momentum
U.S. commercial revenue more than doubled to $397 million. Total contract value for domestic commercial deals grew over four times to $1.31 billion.
Palantir credits artificial intelligence platform adoption for much of this commercial acceleration. The company announced recent partnerships with Snowflake, Lumen, and Nvidia to expand its market presence.
CEO Alex Karp addressed the AI market landscape in a CNBC interview. He acknowledged excess in the current environment. “The strong companies are going to get much stronger, and the people pretending they’re doing stuff are going to disappear very quickly,” Karp explained.
Retail investors have helped propel Palantir’s stock price higher throughout 2025. Shares have gained more than 170% year-to-date. Market capitalization now exceeds $490 billion, placing the company among elite technology names.
Valuation Debate Continues
The stock trades at elevated multiples compared to larger tech peers. Several analysts have questioned whether current valuations are sustainable. Karp responded to critics in his shareholder letter, calling them “detractors.”
He argued Palantir has enabled retail investors to access venture capital-like returns. “We have done so through authentic and substantive growth,” Karp wrote.
Broader tech stocks also weakened in early European trading. Nasdaq futures pointed to a 1.3% lower open. Frankfurt-listed shares of Meta, Tesla, Alphabet, Amazon, Nvidia, Apple, and Microsoft dropped between 0.9% and 2.6%.
Palantir posted Q3 earnings of 21 cents per share on $1.18 billion revenue, raising Q4 guidance to $1.33 billion and full-year expectations to $4.4 billion.
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