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Is Palantir Stock a Buy on the Dip as Revenue Continues to Surge?
The Motley Fool • • business
Key Points:
- Palantir Technologies reported another strong quarter with Q3 revenue of $2.31 billion, surpassing both management guidance and analyst expectations, and adjusted EPS rising to $0.44 from $0.18 year-over-year.
- U.S. commercial revenue led growth with a 148% increase to $984 million, supported by expanding adoption of Palantir’s Artificial Intelligence Platform, while net revenue retention improved to 165%, indicating strong customer spending growth.
- Government segment revenue surged 81% year-over-year to $1.15 billion, including a 96% increase in U.S. government revenue, and total customer counts also rose significantly across segments.
- Palantir raised its full-year revenue guidance to $8.53 billion, expecting 82% growth, and projected Q4 revenue growth of approximately 88%, signaling continued acceleration in revenue growth.
- Despite a high forward price-to-sales ratio of 33.5 times 2027 estimates, Palantir’s potential for sustained rapid revenue growth could justify its valuation, with scenarios suggesting revenue could reach $29 billion by 2028, lowering its relative valuation multiple.
