Palantir beats forecasts, lifts guidance
By Abigail Townsend
Date: Tuesday 04 Nov 2025
(Sharecast News) - Shares in Palantir Technologies came under pressure on Tuesday, despite the data intelligence specialist posting above-forecast quarterly numbers and boosting its full-year outlook.
Posting after the bell on Monday, Denver-based Palantir said revenues had surged 63% in the three months to 30 September to $1.18bn.
Much of the growth came from the US, where revenues spiked 77% to $883m, after it secured a number of government and military contracts.
In a letter to shareholders, co-founder and chief executive Alex Karp called the US commercial business "an absolute juggernaut. And we believe that it will become, on its own, one of the most significant business stories of the century in American economic life".
Referencing the poet WB Yeats, he added: "Today, America is the centre, and it must hold."
Group net income surged 40% to $476m, comfortably ahead of forecasts for $435m
Looking ahead, Palantir was similarly upbeat, raising its maximum full-year revenue guidance to $4.4bn, and predicting adjusted income from operations of up to $2.155bn.
US commercial revenues were guided to be in excess of $1.43bn, a growth rate of 104%.
Chief technology officer Shyam Sankar told investors that the number of opportunities facing Palantir was "great", adding: "America is involved with three conflicts from Europe, the Middle East and our own hemisphere right now. Things are also getting spicy in Africa."
However, as at 1100 GMT on Tuesday, the stock had shed 7% in pre-market trading.
Investors are increasingly worried about Palantir's sky-high valuation. The stock has put on 175% in the year-to-date, and an extraordinary 1,398% over the last five years.
Karp told shareholders: "Some of our detractors have been left in a kind of deranged and self-destructive befuddlement.
"It has indeed been difficult for outsiders to appraise our business, either its significance in shaping our current geopolitics or its value in the vulgar, financial sense.
"The reality is that Palantir has made it possible for retail investors to achieve rates of return previously limited to the most successful venture capitalists in Palo Alto."
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