Palantir Q3 earnings set to test AI defense tech stock’s rally as investors eye government shutdown impact
Palantir (PLTR) will report third-quarter earnings after the bell on Monday in an attempt to test AI stocks’ recent rally.
Palantir shares are up more than 28% since its last quarterly report in August; This was ahead of the nearly 20% rise seen in the “Magnificent Seven” Big Tech stocks in that time frame.
The defense technology firm is expected to report revenue of $1.09 billion for the September quarter, according to consensus estimates from Wall Street analysts tracked by Bloomberg. This represents a 50% increase compared to the same period the previous year
Within this figure, analysts predict that Palantir’s revenue from government contracts will reach $599 million, a 47% increase compared to last year, driven by agreements with the US government. Analysts expect Palantir’s commercial segment to report revenue of $491 million, 55% higher than in the third quarter of 2024.
The company is also expected to report adjusted earnings per share of $0.17, ahead of last year’s earnings per share figure of $0.10.
Options traders predict the stock will rise or fall as much as 9% after Palantir reports results on Monday, according to Bloomberg data. According to Bloomberg data, Palantir shares have historically moved more than that following the company’s quarterly results; rose or fell as much as 14% following the earnings report.
Read more: Live broadcast of corporate earnings
Palantir sells its artificial intelligence software to businesses and governments in the United States and abroad. Its technology does everything from supply chain analysis to surveillance to identifying military targets. Agreements with the Israeli army and ICE attracted public reaction.
Investors are watching how the U.S. government shutdown could impact Palantir’s fourth-quarter revenue and earnings guidance, analysts at Morgan Stanley and RBC Capital Markets said in notes to investors this month, in the company’s latest report after the market close.
Shares of Palantir are up more than 170% this year. The stock rose nearly 3% on Monday ahead of third-quarter results.
The company’s last two quarterly reports beat Wall Street’s expectations on the top and bottom lines but produced mixed results for the stock.
Shares fell after first-quarter results put rising valuations in focus. Then in August, Palantir’s shares took off as second-quarter results showed the company’s U.S. commercial segment beat analyst estimates. The division reported revenue growth of over 90% over the previous year. Palantir’s U.S. business operating revenue rose to $306 million in the second quarter, from $159 million in the same period a year ago.
