Palantir Faces Q3 Earnings Test as Wall Street Splits on Valuation

What happened

Palantir is due to report third-quarter results after Monday’s market close. Analysts expect earnings of $0.41 per share and revenue of $2.18 billion, an 84.7% year-over-year increase. Analysts disagree on valuation: price targets range from $90 to $250, while the average is $218.95.

Confirmed

Global impact / market context

The results and any change to the full-year outlook could affect expectations for Palantir’s future sales. Strong growth could support the optimistic view, while results below expectations may make the company’s high valuation harder to justify and increase pressure on its shares.

Analyst inference

Analysts cite strong U.S. commercial and government growth, with Palantir forecasting commercial revenue growth above 140% and government revenue growth above 65%. But RBC says the shares trade at about 61 times expected 2026 revenue, a valuation that leaves limited room for disappointment.

Confirmed

What to watch

1. Palantir’s third-quarter earnings release is scheduled for after Monday’s market close; compare reported revenue and earnings with Wall Street’s expectations of $2.18 billion and $0.41 per share. Confirmed
2. Watch whether management raises its full-year projection, as the article identifies an increased outlook as a potential catalyst for changing expectations about future sales. Analyst inference
3. Check whether U.S. commercial and government revenue growth supports the company’s forecasts; slower growth could challenge bullish views, while strong results may reinforce them despite valuation concerns. Analyst inference

Evidence

• gurufocus.com