EARNINGS ALERT: PLTR

Core Insights - The company reported a strong third quarter with adjusted EPS of 21 cents, exceeding the expected 17 cents, and revenue of $1.18 billion, surpassing the anticipated $1.1 billion [1] - The full fiscal year revenue outlook has been raised to $4.4 billion from a previous estimate of $4.14 to $4.15 billion, with current quarter guidance set at $1.33 billion, above the street estimate of just under $1.2 billion [2] - US commercial revenue saw a significant increase of 121% year-over-year, reaching $397 million, while operating profit for the full year is now projected at $2.15 to $2.16 billion, up from the previous estimate of $1.93 billion [2][3] Financial Performance - Adjusted EBITDA for the quarter was reported at $606.5 million, significantly higher than the expected $502.1 million [1] - The company achieved a record total contract volume of $2.7 billion for the quarter, marking a 151% increase year-over-year [5] - The commercial business is outpacing growth in government contracts, which increased by 52% [10] Market Reaction - The stock price increased by approximately 3% following the earnings announcement, reflecting positive market sentiment despite concerns about valuation [3][9] - Analysts noted that the stock is viewed as expensive, with discussions around its valuation being a point of contention [10][14] Future Outlook - The company is expected to rely more on commercial revenue as government spending may face delays [4][11] - There are concerns regarding potential impacts from a government shutdown on contract pipelines, particularly in international markets [12][15] - Speculation exists around a possible stock split announcement, which could influence retail buying behavior in the coming weeks [16]