Palantir Earnings: Good or Bad?

Core Insights - Palantir (PLTR) reported strong Q3 results, attracting significant attention due to recent short positions and market uncertainty [1] Financial Performance - Quarterly sales reached $1.2 billion, marking a 63% increase year-over-year [2] - US commercial revenue surged by 121% YoY, while US government revenue increased by 52% [2] Deal Activity - The company closed over 200 deals worth at least $1 million, including 91 deals worth at least $5 million and 53 deals worth at least $10 million [3] - Total Contract Value (TCV) reached a record $2.8 billion, up 340% from the same period last year [3] Customer Growth - Customer count grew by 45% YoY, indicating strong momentum and a rapidly expanding customer base [4] Future Outlook - Palantir provided its highest sequential quarterly revenue growth guidance in history for Q4, expecting 61% growth [8] - The company also raised its sales, adjusted operating income, and adjusted free cash flow guidance for the current year [8] Market Reaction - Despite robust results, the share reaction was muted, likely due to significant year-to-date gains of 140% in 2025 [10][12] - The company remains a strong candidate for investors seeking exposure to the software and AI sectors, supported by high growth rates and demand forecasts [12]