TLDR
- Palantir stock traded at $169.11 premarket Tuesday, down about 5% from Monday’s $178.34 close.
- Q3 revenue rose 96% to $2.313 billion, topping the $2.17 billion estimate.
- Full-year revenue guidance is now $8.530 billion to $8.534 billion.
- US commercial revenue passed US government revenue for the first time.
- Mizuho kept its Outperform rating and $245 price target.
Palantir (PLTR) stock fell about 5% in premarket trading on Tuesday, changing hands at $169.11. It closed Monday at $178.34.
Palantir Technologies Inc., PLTR
The slide followed a third quarter report that topped Wall Street estimates. The company also raised its full-year revenue outlook.
Q3 revenue came in at $2.313 billion, up 96% from a year earlier. Analysts expected $2.17 billion, according to Bloomberg data.
Adjusted earnings per share were $0.44, ahead of the $0.40 consensus. Adjusted operating margin hit 61.7%, above the 60.2% forecast.
For the first time ever, US commercial revenue passed US government revenue. Revenue growth has now sped up for 13 straight quarters.
Outlook and Background
Palantir now sees full-year revenue between $8.530 billion and $8.534 billion. Analysts had expected $8.2 billion.
The company lifted its US commercial sales target to more than $3.559 billion. Management also raised its 2026 growth guidance by about 9 percentage points.
CEO Alex Karp kept the earnings call lively. “We’ve gone from being the most attractive person in the physics department to being the captain of the football team,” he said.
Palantir has pushed back on fears that AI will disrupt software. It says some firms spend millions on model tokens and get “AI slop,” while its infrastructure layer delivers more.
The stock is up about 2% year to date. It has been caught in the recent tech sell-off.
Earlier this year, Palantir’s Maven Smart System became an official Pentagon program. That cemented a multiyear role across US military AI projects.
Analyst Reactions
Mizuho reiterated its Outperform rating and $245 price target. The firm said Palantir combines growth, acceleration and margin expansion at a scale unlike anything else in software.
Truist raised its target to $250 and lifted its 2026 revenue growth estimate to 91%. Piper Sandler moved its target up to $235.
Morgan Stanley set a $233 target. UBS reiterated a Buy rating, noting Palantir’s 96% growth outpaced Snowflake and Datadog.
RBC raised its target to $130 but kept its Underperform rating, citing the strong results.
Wall Street has 30 Buy ratings, nine Holds and two Sells. The consensus price target is $216.
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