Palantir’s AI push tests bears who doubt it can keep winning

Core Insights - Palantir's management is emphasizing that its AI platform is a viable solution for corporations and governments, not just a demonstration [1] - The company reported record revenue of $1.18 billion in Q3 2025, driven by significant growth in U.S. commercial activity and government contracts [4] - There is a divide among investors, with some bullish on Palantir's growth potential while others express concerns about an overheated AI market [2][3] Financial Performance - Palantir's U.S. commercial revenue doubled year-over-year, with contract values reaching an all-time high for contracts over $5 million and $10 million [9] - Profitability has improved alongside revenue growth, indicating operational leverage is becoming effective as deployments increase [5] - The company ended the quarter with strong cash flow and no immediate liquidity concerns, allowing for potential share buybacks and conservative stock-based compensation [6] Market Sentiment - Skeptics warn that the AI market may be experiencing a supply-driven cycle rather than sustainable demand, which could impact software pricing and ROI timelines for customers [7] - Notable investors, including Michael Burry, are publicly opposing Palantir, suggesting that the current environment may resemble past tech bubbles where strong companies faced significant valuation compression [8] Future Outlook - Management anticipates continued growth in quarterly sales and sustained GAAP operational profitability [6] - However, there are concerns that if business pilots do not become widespread, U.S. commercial growth may decline from its current triple-digit levels [10]