Palantir falls 3.1% after quarterly results and raised revenue outlook

What happened

Palantir (PLTR) fell 3.1% on November 2, 2026, after reporting third-quarter results that beat estimates and raising full-year revenue guidance. The stock closed at $178.34. Management said demand for its Sovereign AI product helped U.S. commercial revenue rise 148% year over year to $984 million, and U.S. commercial revenue exceeded U.S. government revenue for the first time, according to Reuters and CNBC.

How big was the move

The stock fell 3.1% on the day, a move equal to 1.1 times a typical daily move for this stock. Trading volume ran at 1.4 times its 20-day average. That compared with the S&P 500, which fell 0.5% on the session, and with the technology sector median, which fell 1.5%; Palantir underperformed its sector by 1.7 percentage points.

Over the last five sessions the stock fell 10.3%, while the S&P 500 fell 1.8% over the same period. The shares opened 1.3% above the previous close and have a beta of 2.23, indicating the stock tends to move more than the market. Market value stood at $423.58 billion.

The technical picture

The stock was 9.3% below its 20-day moving average and 4.6% below its 50-day moving average. It remained 16.1% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock had spent 64 consecutive trading days above the 200-day average.

The Relative Strength Index (14 days) read 38, in a neutral range between 30 and 70. The shares were 16.2% below the 52-week high. Over one month the stock fell 5.5%, over three months it rose 9.6%, and over one year it fell 8.3%, leaving it 18.9 percentage points behind the S&P 500. Volatility was 45% annualized over 60 days, lower than 97% of its own readings over five years.

Fundamentals and valuation

For the four quarters through September 30, 2026, Palantir reported revenue of $7.29 billion, which grew 87.1% from a year earlier. Diluted earnings per share were $1.43, which rose 228.7% year over year. Gross margin widened to 84.7% from 80.8% a year earlier, and operating margin improved to 45.6% from 21.8%.

Free-cash-flow margin stood at 55.6% and return on invested capital at 25.6%. The balance sheet showed net cash of $3.39 billion. Share count increased by 0.5% over one year. On valuation, the stock traded at 124.7 times trailing earnings and 111.4 times expected earnings, with a free-cash-flow yield of 1.0%.

Its price-to-earnings reading was lower than 92% of its own readings over the past five years, where the five-year median was 258.8 times earnings. PromtFinance scores rank Palantir highly for growth at 98 (Exceptional) and quality at 89 (Strong), while value scored 35 (Weak).

Earnings and analyst expectations

Palantir reported results on November 2, 2026, with adjusted earnings of $0.44 per share versus $0.41 expected, an 8.3% beat. That quarter marked the thirteenth consecutive quarter beating estimates. The company said third-quarter revenue was $2.313 billion, up 96% year over year and the first quarter with revenue above $2 billion. Adjusted earnings on the quarter were $0.44 compared with $0.21 a year ago, according to Reuters and CNBC.

Management also updated guidance, raising full-year revenue growth expectations to 91% and raising U.S. commercial revenue guidance to 143% year over year. It issued Q4 guidance some commentators described as conservative, prompting debate over whether growth will moderate.

Analysts placed a consensus price target at $207.24, 16.2% above the closing price, based on 27 analysts with ratings. Fifty-six percent of those ratings were Buy or Strong Buy and the consensus rating was Buy. The typical two-day reaction to recent reports had been a rise of 1.2%, and the average surprise over the last four reports was 12.4% above estimates. Palantir is scheduled to report next on February 1, 2027.

What to watch

• November 2, 2026: the company reported Q3 results showing $2.313 billion in revenue and adjusted earnings of $0.44 per share, 8.3% above estimates
• Management raised full-year 2026 revenue guidance to expect 91% growth and updated U.S. commercial guidance to 143% year over year
• Next scheduled earnings report: February 1, 2027
• Consensus price target: $207.24, 16.2% above the closing price
• PromtFinance Growth score: 98 (Exceptional)