Key Takeaways
- Palantir posted record third-quarter results that topped analysts’ estimates.
- The data analytics software maker raised its full-year revenue outlook for the third straight quarter.
Palantir posted record quarterly results that blew past analysts’ estimates and raised its full-year revenue outlook for the third straight quarter.
The AI software company reported adjusted earnings per share of $0.21 cents on revenue that jumped 63% year-over-year to a record $1.18 billion in the third quarter, well above analysts’ estimates compiled by Visible Alpha, driven by strong demand for its Artificial Intelligence Platform.
While Palantir still derives more of its domestic business from the government than corporations, its commercial segment drove much of the company’s growth in the quarter. Palantir’s commercial revenue in the U.S. surged 121% to $397 million, compared to a 52% jump in U.S. government revenue to $486 million.
CEO Alex Karp called the commercial segment an “absolute juggernaut” in a letter to investors, in which he touted the company’s “otherworldy” growth.
Why This Matters for Investors
Amid some worries on Wall Street that this year’s rally in Palantir shares has left the stock overvalued, the company’s strong quarterly results could help boost sentiment around its trajectory.
Looking ahead, Palantir said it sees fourth-quarter revenue of $1.327 billion to $1.331 billion, leading it to raise its full-year revenue outlook to $4.396 billion to $4.4 billion, up from $4.14 billion to $4.15 billion previously, marking the third straight quarter it’s hiked its forecast.
Shares of Palantir surged over 5% in extended trading shortly following the release, before paring those gains to trade marginally higher. The shares were up over 170% for the year through Monday’s close, making it one of the best-performing stocks in the S&P 500 for 2025.