Palantir Technologies Posts Record Q3 Revenue but Shares Fall on Valuation Concerns

Palantir Technologies (PLTR, Financials) reported record third-quarter results, but its stock slipped more than 6% in premarket trading as investors questioned its high valuation.

The data analytics company posted net income of $475.6 million on $1.18 billion in sales, surpassing Wall Street expectations.

Chief Executive Alex Karp said the firm is now producing more profit in a single quarter than it did in revenue not long ago, citing accelerating adoption of artificial intelligence software and rising U.S.

government demand. The company highlighted $500 million in new contracts with the Internal Revenue Service and State Department.

Despite stronger guidance for the fourth quarter, analysts expressed caution over valuation. Jefferies said Palantir's financial performance was solid but the risk/reward at 83x estimated 2026 revenues is unfavorable. Morgan Stanley analysts, however, maintained a positive outlook, pointing to the company's momentum and fastest-ever sequential revenue growth.