"When the company reported Q3 earnings on Nov. 3, 2025, it beat on the top and bottom lines with EPS of 21 cents versus 17 cents expected, and revenue of $1.18 billion versus $1.09 billion expected. Palantir issued strong guidance, attributing growth to adoption of its AI software platform. Meanwhile, it announced that government sales - which have been essential to Palantir's rise - grew 52% from the same quarter a year ago."
"In September 2025, it was reported that the company agreed to a £1.5 billion defense deal with the U.K. That comes not he back of an announcement in early August that the U.S. Army is consolidating 75 contracts into a single 10-year arrangement with Palantir valued at $10 billion. However, the so-called smart money have been selling the stock in flurries lately, leaving Palantir's institutional ownership at just 56.22%. JPMorgan, for example, recently reduced its position in PLTR by more than 32%, while T. Rowe Price reduced its position by nearly 24%."
"While the stock's forward P/E ratio of 166.67 can be concerning, Palantir's federal contracts and aerospace ties are expected to continue fueling growth. While earnings are rear-facing, the emerging trends seen in the company's Q3 results can serve as a foundation for further rewards for shareholders. However, PLTR's market multiple implies it could take an investor nearly half a century to recover their initial investment, assuming earnings remained constant. But the assumption from the company - and from Wall Street analysts - is that earnings will continue to grow. So while there is concern about its valuation,"
Palantir's shares slipped early in the year after consecutive weekly losses, though the stock is up nearly 120% year-over-year and 1,701.09% since its October 2022 IPO. Q3 2025 results beat expectations with EPS of $0.21 versus $0.17 and revenue of $1.18 billion versus $1.09 billion, and management cited AI platform adoption and strong guidance. Government sales rose 52% year-over-year. The company secured large defense agreements including a £1.5 billion U.K. deal and a potential $10 billion U.S. Army consolidation. Institutional ownership has fallen to 56.22% amid notable position reductions by major firms. Forward P/E stands at 166.67, raising valuation concerns despite growth prospects.
Read at 24/7 Wall St.
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