Why Is Everyone Watching Palantir Stock?

Core Insights - Palantir Technologies has gained significant attention as a leading AI stock, driven by impressive quarterly performance and substantial government contracts [1][4] - The stock has increased by 135% this year, outperforming major competitors in the AI sector [1] Financial Performance - In Q3, Palantir's total revenue rose by 63% year-over-year to $1.18 billion [4] - Government revenue grew by 52% year-over-year to $486 million, supported by strong execution in defense and intelligence programs [4] - The company achieved a record total contract value (TCV) of $2.8 billion, a 151% increase year-over-year, with 204 deals exceeding $1 million [5] Business Segments - Palantir's government business remains a core strength, with international government revenue increasing by 66% year-over-year [5] - The U.S. commercial segment is now the fastest-growing division, surging 121% year-over-year as corporations adopt AI solutions [6] Profitability Metrics - The company reported an adjusted gross margin of 84% and a net income of $476 million, representing 40% of total revenue [6] - Adjusted earnings per share stood at $0.21, indicating strong profitability alongside rapid growth [6]