Palantir Q3 Beats Estimates, Stock Falls on Valuation

Palantir reported Q3 revenue of about $1.18 billion, up 63% year‑over‑year, and adjusted EPS of $0.21, driven in part by a 121% jump in U.S. commercial revenue, topping Wall Street estimates. Management raised full‑year revenue guidance to roughly $4.4 billion and increased targets for adjusted operating income and free cash flow. The company reported strong cash generation with operating cash flow of $508 million and adjusted free cash flow of $540 million, and highlighted a Rule of 40 of 114%. Palantir also announced large government awards — a roughly $10 billion Army agreement and a $385 million VA contract — but said only about $10 million of the Army deal is currently obligated and the VA award shows no current obligations. Despite the beats and upgraded outlook, the stock fell about 3% in after‑hours trading amid valuation concerns and calls for longer‑term guidance, and billionaire Michael Burry’s Scion reportedly bought five million PLTR put options, underscoring divergent investor views.