Palantir posts strong Q3 results, revenue up 63%, valuation concerns

Palantir Technologies reported a strong third quarter on Monday, saying revenue rose to $1.18 billion, up 63 percent from a year earlier, and adjusted earnings per share came in at $0.21 versus analysts’ estimate of $0.17. The results and an upward revision to full‑year guidance briefly pushed the company’s stock to a record close of $207.18 on November 3, but the rally stalled this week amid concerns about Palantir’s lofty valuation and fresh bearish bets by a high‑profile investor.

Palantir said U.S. commercial sales climbed 121 percent to $397 million, a key driver of the quarter that company executives credited to accelerating corporate adoption of its Artificial Intelligence Platform. The business has also benefitted from large government work, including contracts with military agencies and a deal with the U.S. Army that the company has said could be worth up to $10 billion. Management raised fourth‑quarter revenue guidance, signaling continued demand for its data and AI software across government and enterprise customers.

Investor reaction was mixed. After the stock set its record, it fell nearly 8 percent on November 4 and tumbled more than 8 percent in premarket trading...