Technology and Scienceupdated 1h ago2 min read
Archive photo · 26 September 2018Palantir Shares Fall 3% After Q3 Revenue Jumps 96% and CEO Highlights Sovereign AI
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Q3 revenue rose 96% year over year to $2.313 billion driven by AI Platform adoption. Net income $1.128 billion and EPS $0.44; full-year revenue outlook above $8.53 billion.
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Q3 surge, shares slide
Palantir Technologies reported third-quarter net earnings of 1.128 billion dollars and earnings per share of 0.44 dollars, while the company’s shares fell 3% this Tuesday on Wall Street despite beating analysts’ consensus expectations in both earnings and revenue. Palantir posted total revenue of 2.313 billion dollars, a 96% year-over-year rise, and it surpassed the 0.41 dollars per share that the market had expected. Alex Karp, cofounder and CEO of Palantir Technologies, said the company’s “roll-out of sovereign AI” is creating “the starkest dichotomy between those who have access to this technology and those who do not.”
Palantir also raised its full-year 2026 revenue guidance to a range of 8.530 to 8.534 billion dollars, and it projected U.S. commercial revenue to more than 3.559 billion dollars. Palantir’s U.S. commercial revenue reached 984 million dollars, and the company said it marked “for the first time in history” that U.S. commercial revenue surpassed the revenue from the U.S. government.
Commercial overtakes government
Palantir said U.S. commercial revenue rose 148% year over year to 984 million dollars, while U.S. government revenue increased 96% year over year to 953 million. Palantir’s results also showed total U.S. sales grew 119% year over year and 23% compared to the prior quarter, reaching 1.937 billion dollars. Alex Karp told Wall Street analysts on the quarterly earnings call that “What Ryan and I are seeing on the front line and commercial is this much quicker interaction, much quicker to deployment, shorter duration of the contract but then an ability to expand that contract dramatically.”
Palantir’s quarter included 212 deals valued at at least 1 million dollars each, including 107 contracts exceeding 5 million dollars and 64 contracts reaching or exceeding 10 million dollars. Palantir’s guidance for Q4 2026 projected revenue between 2.649 million and 2.653 million dollars, and it projected annual free cash flow between 4.800 million and 5.000 million dollars.
Contract growth slows
Investors reacted to Palantir’s results by focusing on contract growth, with Palantir stock falling about 3% in extended trading after the quarter’s record revenue and profits. TIKR said total contract value climbed by only 6% year-over-year to 2.92 billion dollars, even as revenue rose 96% to 2.31 billion dollars. TIKR also said CEO Alex Karp told Palantir’s Q3 results call that the market for its AI software is “much larger than we can service.”
TIKR highlighted that remaining deal value of US commercial deals rose only 4% since June to 6.52 billion dollars, framing that figure as “the figure to watch in Palantir’s next report.” TradingKey said Palantir’s shares fell 8% in premarket trading on November 3, brushing two-month lows, because the 96% surge in Q3 revenue failed to lift the stock.