Palantir posts strong Q3 results but shares slip amid slowing contract growth

Palantir Technologies reported third‑quarter revenue of $2.313 billion, up 96% year‑over‑year, and adjusted earnings of $0.44 per share, beating estimates. The company raised its 2026 revenue outlook to $8.530 billion‑$8.534 billion but disclosed that total contract value grew only 6% YoY to $2.918 billion, with U.S. commercial bookings up 11% after a prior 153% surge. Despite the beat, the stock fell about 3% in after‑hours trading as investors worried about the slowdown and the company’s high non‑GAAP P/E of 153.43.

The modest contract‑growth pace and a high valuation give investors less margin for disappointment, so the share‑price decline signals heightened scrutiny of future growth. The guidance still tops Wall Street forecasts, but the implied 14.6% sequential Q4 growth is slower than the 20% Q3 pace, which may temper expectations.

  • 1Q3 revenue was $2.313 billion, a 96% year‑over‑year increase.
  • 2Adjusted earnings were $0.44 per share, above the $0.41 consensus.
  • 3Total contract value (TCV) for Q3 was $2.918 billion, up 6% YoY.
  • 4U.S. commercial TCV rose 11% YoY.
  • 5Palantir raised its 2026 revenue guidance to $8.530 billion‑$8.534 billion.
  • 6Q4 revenue guidance is $2.649 billion‑$2.653 billion, implying about 14.6% sequential growth.

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