Palantir shares surged to record highs after yet another blockbuster quarter, smashing expectations and lifting its full-year forecast as AI demand continues to supercharge growth.
Josh Gilbert, Market Analyst at eToro, said: "Palantir’s Q3 results were stellar and reflect a business riding the AI momentum. Revenue jumped 63% year-on-year to USD 1.18 billion, adjusted operating profit closed in on USD 600 million, and margins expanded to 51% versus 38% a year earlier. The standout was its US commercial segment, which surged 121% to USD 397 million — clear evidence that Palantir’s push beyond government contracts is gaining serious traction."
Palantir raised its full-year revenue guidance to around USD 4.4 billion, comfortably surpassing Wall Street expectations and confirming that demand for its AI and data analytics platforms continues to accelerate across all areas of the business. The results underscore how the company’s AI strategy is translating into tangible, top-line growth.
Despite the strong performance, Gilbert noted that valuation remains a key concern: "Palantir trades at one of the highest price-to-sales ratios on the S&P 500, which raises questions about how much of this rally is driven by fundamentals versus broader trends in AI and defence. There’s no doubt Palantir is one of the few names fully monetising the AI trend — but this stock is priced to absolute perfection."
With its latest guidance lift, Palantir continues to show that it still has room to surprise and deliver, cementing its status as one of the market’s leading AI plays.
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