After a robust quarterly report, Palantir’s CEO detailed how customers are finding value in the company's AI data analytics platform.

  • Palantir closed 212 deals in the third quarter, worth $2.9 billion.
  • Deal negotiations and closure are quicker, CFO David Glazer said.
  • Palantir reported Q3 revenue and profit higher than expectations.

Palantir Technologies, Inc. (PLTR) reported another strong quarter on Monday, with revenue nearly doubling and profit more than doubling, and described how customers were moving beyond pilot programs to make Palantir’s technology central to their workflows.

CEO Alex Karp said on the analyst call that customers were approaching the company with a new urgency. They are frustrated with their current systems and increasingly concerned about who controls their data and intellectual property. That has sped up the sales cycle, with pilots starting sooner, deployments happening faster, and contracts growing quickly once customers see the technology at work.

“We've gone from being the ‘most attractive person in the physics department’ to being the ‘captain of the football team’ kind of thing,” Karp remarked.

Palantir closed 212 deals in the third quarter, worth $2.9 billion, with 107 deals exceeding $5 million, and 64 deals valued at $10 million or higher. In Q2, it had signed 220 deals worth $3.4 billion.

“We signed multiple 8-figure deals in the quarter that were shorter in duration than usual, as customers rapidly adopted initial Sovereign AI capabilities in their enterprise," Palantir CFO David Glazer said.

“As we continue to deliver value with Sovereign AI, over time, we expect both the duration and size of these contracts to increase.”

Palantir’s Q3 Recap

Total sales rose 96% to $2.31 billion, beating expectations of $2.18 billion. Net profit increased $1.13 billion from $475.6 million a year earlier. On an adjusted basis, earnings were $0.44 per share vs. the expected $0.41.

A big draw from the report was that Palantir’s U.S. commercial business surpassed its government business for the first time, climbing 148% to $984 million. The U.S. government revenue rose 96% to $953 million.

In recent years, Palantir’s revenue and stock have surged on new government contracts, making it a major defense player. Its software supports Army command systems and the Pentagon’s Maven AI platform, which was used in operations in Venezuela and Iran.

Palantir also lifted its full-year guidance, projecting revenue of $8.53 billion to $8.534 billion, up from earlier guidance of $8.15 billion and $8.158 billion. Analysts were expecting $8.21 billion in full-year revenue heading into the print.
 

Retail View On PLTR

On Stocktwits, the retail sentiment for PLTR shifted to ‘bullish’ from ‘bearish’ the previous day.

“If you still think Wall Street isn’t deliberately shaking weak hands with today’s drop, and the continued weakness after hours following another absolute blowout quarter, then you need a reality check,” a trader wrote. 

“This wasn’t just a good quarter. It was the kind of print that resets the forward trajectory higher.. The numbers, the guidance tone, and the underlying demand signals all point to more upside ahead…not less,” they said.

Another called the stock “incredibly cheap right now.”

Despite quarter after quarter of strong reports, Palantir shares were flat year to date as of their last close. Shares fell nearly 3% overnight after the Q3 report, signaling concerns around its high valuation.

 

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