Palantir Technologies (PLTR) has reported stellar third-quarter results with support from rising adoption of its Artificial Intelligence Platform (AIP) across U.S. commercial and government sectors. Backed by the strong performance, the data analytics company also raised its full-year outlook, which beat analysts’ expectations. Following the release, PLTR stock jumped about 2% in the after-hours trading session.
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Earnings per share (EPS) of $0.21 easily topped consensus estimates of $0.17. Also, Q3 revenue totaled $1.18 billion, which was ahead of the $1.09 billion estimated by analysts. Overall sales were up 63% from a year earlier, driven by a 121% jump in U.S. commercial revenue and 52% in U.S. government.
The company closed a record $2.76 billion in total contract value (TCV), up 151% from the prior year. This includes $1.31 billion in U.S. commercial TCV, up 342% year-over-year. Remaining deal value (RDV) in U.S. commercial reached $3.63 billion, up 199% year-over-year.
Full-Year Outlook Raised
For full-year 2025, the company raised its revenue outlook to the range of $4.396 billion to $4.40 billion, up from prior expectations of between $4.142 billion and $4.15 billion. For reference, analysts were expecting revenues of $4.16 billion.
Further, Palantir forecasts U.S. commercial revenue of more than $1.433 billion, up at least 104% year-over-year. Also, adjusted income from operations is now projected between $2.151 billion and $2.155 billion, with adjusted free cash flow expected to range from $1.9 billion to $2.1 billion.
For the current third quarter, PLTR forecast revenues between $1.327 billion and $1.331 billion, beating analysts’ estimates of $1.18 billion.
Is Palantir Stock a Buy?
Turning to Wall Street, PLTR stock has a Hold consensus rating based on four Buys, 13 Holds, and two Sells assigned in the last three months. At $154.88, the average Palantir stock price target implies a 25.05% downside risk. It must be noted that analysts may update their price targets for PLTR stock after this earnings report.
