Palantir (PLTR) stock was heavily defended after Tuesday’s results, as shares fell 6% premarket amid a broader collapse in the AI business.
Wall Street is probably right to stick its neck out to Palantir after the type of quarter announced Monday evening.
“Palantir reported another stellar quarter with results well above expectations as revenue growth accelerates further due to parabolic U.S. demand for AI solutions. The growth thesis behind Palantir’s commercial segment was manifested when commercial revenues surpassed government for the first time. We continue to believe Palantir is the best story in all of software,” said Gil Luria, analyst at DA Davidson.
178.34 -5.77 (-3.13%)
Closing: November 2 at 4:00 p.m. EST
166.63 -11:71 a.m. (-6.56%)
The Alex Karp-led software play hit all the bullish notes in the third quarter, unlike hyperscalers such as Amazon (AMZN), which sparked another rout in tech stocks.
Revenue growth accelerated to 96% from 93% last quarter. Commercial segment sales in the United States exploded 148% year-over-year. U.S. government sales accelerated to 96% from 90% previously.
Sales and profits exceeded analysts’ high estimates.
At the same time, the full-year adjusted operating profit forecast was raised by $354 million to $5.247 billion.
And to top it off, in a market nervous about free cash flow in the technology sector, Palantir raised its free cash flow forecast by $300 million, to $4.9 billion.
Palantir couldn’t do much more to combat the bearish raid on tech stocks!
“Looking ahead, this quarter’s form is what reinforces our view that 2027 is the inflection year for AI monetization, and Palantir remains our top choice in software,” said Dan Ives, partner at Yorkville Ives.
Brian Sozzi is the editor-in-chief of Yahoo Finance, host of the Sozzi unleashed morning show, the ‘Powerful actors with Brian Sozzi podcast and member of the Yahoo Finance editorial leadership team.
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