Palantir raises full-year revenue outlook as US commercial sales top US government revenue for the first time

Key Points:

• Palantir reported Q3 revenue of $2.313 billion, a 96% increase year-over-year, surpassing Wall Street estimates of $2.17 billion, and raised its full-year revenue outlook to between $8.530 billion and $8.534 billion, above analyst expectations of $8.2 billion.
• The company's US commercial business exceeded its US government sales for the first time, with a raised commercial sales target of over $3.559 billion, reflecting strong momentum outside its traditional government base.
• Adjusted earnings per share of $0.44 beat consensus estimates of $0.40, contributing to positive investor sentiment despite broader tech sector challenges and AI disruption fears.
• Palantir has positioned itself in the enterprise AI market by emphasizing its infrastructure layer over costly AI model tokens, aiming to differentiate from competitors and capitalize on growing AI adoption.
• Wall Street remains mostly bullish on Palantir, with 30 Buy ratings, nine Holds, two Sells, and a consensus price target of $216 per share, supported by the company's expanding commercial footprint and Pentagon AI projects.