Core Insights - Palantir exceeded Wall Street expectations in Q3, raising its full-year guidance and reporting triple-digit growth in its U.S. commercial business [1][3] - Despite strong performance, Palantir's stock fell over 7% due to broader market trends and investor caution [1][2] Financial Performance - Revenue surged 63% year-over-year to nearly $1.2 billion, surpassing analysts' estimates of $1.09 billion [3] - U.S. commercial sales increased by 121%, contributing to overall U.S. growth of 77% [3] - Operating margins reached 33% on a GAAP basis and 51% adjusted, with free cash flow exceeding half a billion [3] - The company achieved a "Rule of 40" score of 114, significantly above the 40% benchmark [3] Market Dynamics - CEO Alex Karp attributed the company's success to its Artificial Intelligence Platform, which enhances AI leverage for both government and corporate clients [4] - Palantir closed a record 204 deals worth at least $1 million, including 53 deals over $10 million, with total contract value rising 151% to nearly $3 billion [4] - The stock market's current state reflects a leveraged bet on AI, with major tech firms, including Palantir, driving S&P 500 earnings growth [5] Analyst Commentary - Wedbush analyst Dan Ives described the quarter as a "validation moment for AI demand," maintaining an Outperform rating and a $230 price target for Palantir [5] - The overall market sentiment is cautious, as the selloff in Palantir and the Nasdaq indicates vulnerability if AI enthusiasm wanes [5][6]