Palantir Exceeds Q3 Expectations with Strong Revenue and EPS Growth

Palantir Technologies Inc. reported third-quarter revenue of $1.18 billion, surpassing analyst estimates of $1.09 billion. Earnings per share reached 21 cents, exceeding the projected 17 cents. The company's performance was driven by a 52% year-over-year increase in government revenue, totaling $486 million, despite ongoing federal contract risks from the government shutdown.

The software firm raised its fourth-quarter revenue forecast to $1.33 billion, well above the $1.19 billion consensus. For the full year, Palantir now anticipates $4.4 billion in revenue, up from Wall Street's $4.17 billion estimate. Free cash FLOW is projected between $1.9 billion and $2.1 billion by year-end.

CEO Alex Karp emphasized that growth stems from real demand rather than hype. Commercial revenue more than doubled, signaling diversification beyond Palantir's traditional reliance on defense contracts, including a potential $10 billion U.S. Army deal.