Palantir Technologies (NASDAQ:PLTR) Issues Earnings Results, Beats Expectations By $0.03 EPS

Palantir Technologies (NASDAQ:PLTR) released its quarterly earnings data on Monday. The company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.41 by $0.03, FiscalAI reports. Palantir Technologies had a return on equity of 32.87% and a net margin of 50.34%. The firm had revenue of $2.31 billion during the quarter, compared to the consensus estimate of $2.18 billion. During the same period in the previous year, the company posted $0.21 earnings per share. The firm’s quarterly revenue was up 95.9% on a year-over-year basis.

Here are the key takeaways from Palantir Technologies’ conference call:

• Revenue growth accelerated to 96% year over year and 20% sequentially, reaching $2.313 billion. Management raised full-year 2026 revenue guidance to approximately $8.53 billion and adjusted free cash flow guidance to $4.8–$5.0 billion.
• U.S. commercial revenue surged 148% year over year and 29% sequentially to $984 million, surpassing U.S. government revenue for the first time. Management attributed the momentum to accelerating demand for its Sovereign AI offering and raised full-year U.S. commercial growth expectations to at least 143%.
• Customer expansion and backlog indicators strengthened, including 165% net dollar retention, a 55% year-over-year increase in total remaining deal value, and a 76% increase in trailing 12-month revenue per top-20 customer. Management also cited multiple pilots converting into substantially larger annual contracts.
• Profitability and cash generation remained exceptionally strong, with a 47% GAAP operating margin, 62% adjusted operating margin, and $1.216 billion of adjusted free cash flow in the quarter. Palantir ended the period with $10.4 billion in cash and securities while continuing to invest in AI research and technical hiring.
• International commercial growth remained comparatively weak, increasing only 21% year over year and 1% sequentially. Management also noted that several new Sovereign AI contracts were shorter than usual, creating some near-term uncertainty despite expectations for future expansion in contract size and duration.

Palantir Technologies Stock Performance

Shares of NASDAQ PLTR opened at $172.43 on Wednesday. The business has a 50 day simple moving average of $186.86 and a 200 day simple moving average of $153.89. Palantir Technologies has a 52 week low of $106.37 and a 52 week high of $212.94. The stock has a market cap of $414.37 billion, a price-to-earnings ratio of 120.36, a PEG ratio of 3.18 and a beta of 1.65.

More Palantir Technologies News

Here are the key news stories impacting Palantir Technologies this week:

• Positive Sentiment: Palantir reported Q3 revenue of $2.31 billion, up 96% year over year, and earnings of $0.44 per share, beating estimates. U.S. commercial revenue surged 148% to $984 million, exceeding U.S. government revenue for the first time. The company also raised its 2026 revenue forecast to about $8.5 billion. Article
• Positive Sentiment: Analysts raised price targets after the results, and ETFs bought a net $108.2 million of Palantir shares on Monday, suggesting institutional demand. Article
• Positive Sentiment: Palantir announced a partnership with footwear manufacturer Changshin to use Foundry and AIP across product development and factory operations, adding another commercial use case for its software. Article
• Negative Sentiment: The main concern is a sharp deceleration in contract metrics: total contract value grew 6% year over year, versus 49% in the prior quarter, while U.S. commercial contract value growth slowed to 11% from 153%. Investors worry that bookings may not sustain the exceptional sales growth. Article
• Negative Sentiment: Palantir’s premium valuation leaves little room for disappointment, and a broader technology-market selloff added pressure. Strong earnings and guidance have therefore not been enough to reassure investors focused on growth durability and what they are paying for it. Article

Wall Street Analysts Forecast Growth

Several research firms have commented on PLTR. Truist Financial reissued a “buy” rating and set a $250.00 price target (up from $223.00) on shares of Palantir Technologies in a research report on Tuesday. Mizuho increased their price target on shares of Palantir Technologies from $215.00 to $245.00 and gave the stock an “outperform” rating in a research report on Thursday, October 15th. Robert W. Baird set a $250.00 price objective on shares of Palantir Technologies in a research note on Monday, October 12th. JPMorgan Chase & Co. began coverage on shares of Palantir Technologies in a report on Thursday, October 29th. They issued an “overweight” rating and a $262.00 target price for the company. Finally, Weiss Ratings raised shares of Palantir Technologies from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, October 23rd. One analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $214.27.

Insider Activity

In other news, insider Alexander Karp sold 492,348 shares of the business’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $174.79, for a total transaction of $86,057,506.92. Following the sale, the insider directly owned 6,432,258 shares in the company, valued at approximately $1,124,294,375.82. The trade was a 7.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Ryan Taylor sold 18,000 shares of the company’s stock in a transaction dated Thursday, October 8th. The stock was sold at an average price of $201.15, for a total transaction of $3,620,700.00. Following the transaction, the insider owned 274,667 shares in the company, valued at approximately $55,249,267.05. This trade represents a 6.15% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 557,358 shares of company stock worth $97,408,897. Corporate insiders own 9.53% of the company’s stock.

Palantir Technologies Company Profile

Palantir Technologies Inc develops software platforms that help government agencies and commercial organizations integrate, analyze and act on data. Its products are designed to support complex operations such as defense and intelligence, supply-chain management, manufacturing, healthcare and other data-intensive activities.

Palantir’s principal platforms include Gotham, which is primarily used by government and defense customers; Foundry, which helps commercial and institutional users build data-driven workflows; Apollo, a platform for deploying and managing software across diverse environments; and the Artificial Intelligence Platform (AIP), which connects generative artificial intelligence capabilities with an organization’s data and operational systems.

Founded in 2003, the company initially focused on software for government and national-security applications before expanding into commercial markets.