Palantir (PLTR) Stock Falls Nearly 8% Despite Earnings Beat

TLDR

• Palantir stock dropped nearly 8% in Tuesday’s premarket trading despite stronger-than-expected third-quarter earnings.
• Palantir reported $2.313 billion in quarterly revenue, representing 96% annual growth.
• Total contract value rose just 6% year over year to $2.918 billion, compared with 49% growth in the previous quarter.
• U.S. commercial contract value growth slowed to 11% from 153% in the second quarter.
• Long-term remaining performance obligations declined $70 million to $2.74 billion.

Palantir (PLTR) stock fell nearly 8% in Tuesday’s premarket trading after it reported slower third-quarter contract growth. Shares traded around $164.15 at 8 a.m. ET, compared with Monday’s $178.34 close.

Palantir Technologies Inc., PLTR

Palantir reported $2.313 billion in revenue, up 96% from a year earlier. Adjusted earnings reached $0.44 per share. Both results exceeded analyst forecasts, but contract figures grew more slowly than during the previous quarter.

Palantir Stock Faces Slower Contract Growth

Palantir signed contracts worth $2.918 billion, up 6% year over year. That followed 49% annual growth in the second quarter, when new contract value reached $3.373 billion.

U.S. commercial contracts totaled $1.463 billion, up 11% from a year earlier. The previous quarter recorded 153% annual growth and $2.132 billion in contracts. Palantir also closed 212 deals worth at least $1 million, versus 220 previously.

These figures measure contracted business, including customer options, rather than completed sales. The drop arrived amid broader selling of AI stocks, with Goldman Sachs data showing hedge funds reduced related holdings during October.

Long-Term Contracted Revenue Declines

Palantir reported $2.74 billion in long-term remaining performance obligations, down from $2.81 billion in the second quarter. The $70 million decline came as shorter-term obligations rose from $2.09 billion to $2.14 billion.

Total obligations fell slightly to $4.88 billion from $4.90 billion. They still stood 88% above the year-earlier level. The measure covers contracted revenue not yet recorded but excludes contracts lasting 12 months or less.

Finance chief David Glazer said termination rights also limit the measure’s coverage of government work. Separately, U.S. commercial remaining deal value reached $6.517 billion, rising 79% annually.

Other technology companies faced questions about rising AI infrastructure spending. Amazon recently reported a $42.4 billion trailing annual free cash flow outflow as it increased data-center investment.

Palantir Raises Its Revenue Outlook

Palantir projected fourth-quarter revenue of $2.649 billion to $2.653 billion, above analysts’ $2.46 billion estimate. It also increased its 2026 revenue forecast to $8.530 billion through $8.534 billion.

Glazer said customers signed several shorter Sovereign AI contracts worth tens of millions of dollars. He expects their size and duration to grow, although Palantir did not link them to the decline in long-term obligations.

Palantir-linked token PLTRB traded near $164.14, down 12% over 24 hours. Its trading differs from Nasdaq shares. The wider market is debating tokenized stock trading plans after several companies objected to one proposed system.

Palantir shares had already declined for five straight sessions through Monday. The stock lost about 10.3% during that period and closed 16.2% below its 52-week high of $212.94.

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