Palantir Technologies Inc., led by CEO Alex Karp, surpassed analyst expectations and provided an optimistic outlook for the fourth quarter, driven by artificial intelligence. The stock rose 3% in after-hours trading. Q3 results: EPS 21 cents vs. 17 cents expected, revenue $1.18 billion vs. $1.09 billion expected. Revenue expected to hit $1.33 billion in the current period.

Despite the ongoing government shutdown, Palantir’s government business grew 52% to $486 million. The company’s success is attributed to government sales, particularly military contracts like the $10 billion deal with the U.S. Army. However, Palantir has faced criticism over its tools’ use by agencies like ICE. Total revenue for the quarter increased by 63% to over $1 billion.

Palantir predicts full-year sales of $4.4 billion, surpassing Wall Street’s forecast. Net income tripled to $475.6 million. Commercial business doubled to $397 million, with total contract value for commercial deals closing at $1.31 billion. The company has secured new partnerships with Snowflake, Lumen, and Nvidia, driving stock prices up over 170%.

Analysts have expressed concerns over Palantir’s stock valuation, which is significantly higher than competitors with more revenue. CEO Karp defended the company’s growth and success, highlighting the opportunity for retail investors to achieve high returns. Despite critics, Palantir’s market cap has exceeded $490 billion, solidifying its position among the most valuable tech companies globally.

Read more at CNBC: Palantir (PLTR) Q3 earnings 2025