Palantir Shares Dip Despite Strong Earnings Beat and Raised Guidance
Palantir Technologies Inc. delivered a robust third-quarter performance, surpassing analyst expectations with revenue of $1.18 billion against a projected $1.09 billion. Adjusted earnings per share reached 21 cents, eclipsing the 17-cent estimate. The company also raised its fourth-quarter revenue guidance to $1.33 billion, well above the $1.19 billion consensus, and lifted full-year sales expectations to $4.4 billion.
U.S. government revenue surged 52% year-over-year to $486 million, while commercial business more than doubled to $397 million. Despite these strong results, shares fell 4-6% in extended and European trading, likely due to profit-taking after a 170% year-to-date rally. CEO Alex Karp defended the company's valuation, warning that weaker AI players may not survive the market's maturation.
