Palantir Stock Drops 14% Despite Record Q3 Earnings Amid AI Valuation Concerns
Palantir Technologies reported blockbuster third-quarter results, with revenue surging 63% year-over-year to $1.18 billion and net income climbing 40% to $475.6 million. The data analytics firm signed $2.76 billion in contracts, including 204 deals worth over $1 million each.
Despite these record numbers, shares plunged 14% post-earnings as investors questioned the sustainability of AI-driven valuations. U.S. commercial revenue grew 121% to $397 million, while government contracts increased 52% to $486 million, demonstrating broad-based adoption.
CEO Alex Karp remains bullish, suggesting the company is 'just getting started.' The selloff reflects broader market skepticism about tech valuations rather than fundamental weaknesses in Palantir's business model.
