Palantir Technologies shares soared to all-time highs after reporting another blowout quarter, far exceeding Wall Street forecasts and prompting the company to raise its full-year outlook. The results highlight the accelerating demand for artificial intelligence (AI) and data analytics across both commercial and government sectors.
AI-driven growth fuels record revenue
According to Josh Gilbert, Market Analyst at eToro, “Palantir’s Q3 results were stellar and reflect a business riding the AI momentum.”
The company’s revenue jumped 63% year-on-year to $1.18 billion, while adjusted operating profit approached $600 million. Profit margins also expanded sharply to 51%, up from 38% in the same quarter last year.
The standout driver was Palantir’s US commercial segment, which surged 121% to $397 million, underscoring the company’s success in diversifying beyond its long-standing government contracts.
Full-year forecast raised as AI adoption accelerates
Palantir raised its full-year revenue guidance to around $4.4 billion, well above consensus estimates. The updated outlook reaffirms the company’s strong positioning as enterprises continue to adopt AI-powered analytics tools at scale.
The results show Palantir’s AI strategy is delivering tangible growth. It’s clear the company is capturing significant value from the corporate AI boom.
Analysts warn on lofty valuation
Despite its exceptional growth trajectory, Gilbert cautioned that Palantir’s valuation remains elevated:
Palantir trades at one of the highest price-to-sales ratios on the S&P 500, which raises questions about how much of this rally is driven by fundamentals versus the broader AI and defence trend. There’s no doubt Palantir is one of the few firms fully monetising AI but this stock is priced to absolute perfection.
With its latest results, Palantir continues to solidify its reputation as one of the most prominent beneficiaries of the global AI wave and one of the market’s most closely watched tech stories.