Chart of Day: PLTR
PLTR just posted another monster quarter.
For roughly 11 consecutive quarters, the AI-driven software company has continued to impress Wall Street with strong revenue growth and rising guidance — one of the key reasons the stock has surged more than 1,800% over the last three years.
This latest earnings report was no exception.
Palantir reported earnings per share of $0.33, beating analyst expectations by five cents. Revenue came in at $1.63 billion, up 84.4% year over year and roughly $90 million ahead of consensus estimates.
Analysts had expected adjusted EPS of $0.28 on revenue of $1.54 billion.
The company’s U.S. business remained especially strong:
- U.S. revenue jumped 104% year over year
- U.S. commercial revenue surged 133%
- U.S. government revenue climbed 84%
CEO Alex Karp highlighted the company’s accelerating momentum, noting that Palantir’s “Rule of 40” score climbed to an extraordinary 145%, placing it among some of the strongest AI infrastructure companies in the market.
Guidance Was Strong Too
Palantir also raised full-year guidance.
The company expects next-quarter revenue between $1.797 billion and $1.801 billion — well above estimates near $1.68 billion.
For the full year, Palantir now expects revenue between $7.65 billion and $7.662 billion, exceeding Wall Street expectations of roughly $7.24 billion.
The company also increased its U.S. commercial revenue outlook, projecting more than $3.224 billion in annual sales for the segment.
So Why Did the Stock Fall?
Despite all the strong numbers, shares of PLTR dropped sharply following the report.
Why?
Because expectations had become incredibly high.
Some analysts pointed to signs of slowing growth beneath the surface. Jefferies noted that U.S. commercial revenue slightly missed internal expectations, marking the first sign of deterioration they had seen in roughly two years.
New contract growth also increased “only” 61% year over year — still impressive, but slower than previous quarters.
At the same time, valuation concerns continue to grow.
According to analysts cited by MarketWatch, PLTR shares recently traded at roughly:
- 34x estimated 2027 sales
- 56x projected free cash flow
Those are premium valuations, even for a fast-growing AI company.
DA Davidson lowered its price target on the stock, citing concerns that shares were trading at a substantial premium compared to peers.
Not Everyone Is Bearish
Some analysts remain extremely bullish.
Wedbush analyst Dan Ives called the earnings report another “validation moment” for Palantir and maintained an outperform rating with a $230 price target.
Loop Capital also maintained a bullish stance, arguing that while valuation concerns are valid, the company’s growth momentum remains difficult to ignore.
The Bigger Picture
The reaction to Palantir’s earnings highlights an important lesson for traders and investors:
👉 Great companies can still see their stocks fall if expectations become too high.
Right now, Palantir remains one of the market’s strongest AI growth stories. But after such an enormous multi-year run, investors are increasingly debating whether future growth can continue justifying the stock’s premium valuation.
That’s why volatility in high-growth AI names is likely to remain elevated moving forward.
About Ian Cooper
Ian Cooper is a veteran trader and market analyst with more than two decades of experience in stocks and options trading. He combines technical analysis, news catalysts, and AI-driven tools to help traders identify structured market opportunities with greater discipline and confidence.
⚠️ Disclaimer: Investing in stocks, options, and futures involves substantial risk and is not suitable for all investors. Past performance is not indicative of future results.