Palantir Beats The Street As It Upgrades Its Outlook
Palantir is leaning hard into the US market... and investors are buying it.
Shares in the data analytics firm rose 3.4% in extended trading on Monday after it delivered third-quarter results ahead of expectations and raised its full-year outlook.
The company now expects to bring in $4.4 billion for the year, up from its earlier guidance of $4.15 billion.
For the current quarter, Palantir projected revenue slightly above $1.3 billion and operating income between $695 million and $699 million—both comfortably above consensus estimates tracked by Bloomberg.
That bullish forecast helped temper investor concerns about a potential slowdown in government spending amid the ongoing U.S. government shutdown.
The company’s third-quarter performance was strong across the board. Revenue climbed 63% year-over-year to $1.18 billion, beating analyst expectations of $1.09 billion. Adjusted earnings came in at $0.21 per share, well above the $0.17 forecast.
The growth was powered by U.S. operations, particularly in government and commercial sectors. Revenue from U.S. government clients rose 52% to $486 million, while US commercial business more than doubled to $397 million, a 121% increase over the same quarter last year.
In a shareholder letter, CEO Alex Karp described the company’s U.S. commercial division as “an absolute juggernaut,” highlighting it as a key growth engine moving forward.
Palantir provides artificial intelligence software and predictive analytics tools for military, security, and industrial applications.
Its contracts have included work with the US Department of Defence, Immigration and Customs Enforcement (ICE), and international partners, occasionally drawing scrutiny over the nature of its government ties.
Despite controversy, the company’s stock has surged more than 170% year-to-date, reflecting investor confidence in its role at the intersection of defence technology and AI.
While previous quarters delivered similarly strong results, the company faced pressure over slower growth overseas. This quarter’s decisive U.S.-led performance may reset that narrative.
