Palantir earnings jumped 63% year-over-year in Q3 — impressive on paper, but is the market buying it? Read on for a clear, no-nonsense breakdown of the numbers, the NVIDIA tie-up, and what CEO Alex Karp’s rhetoric might mean for investors.
Q3 financial results: revenue, net income and the Rule of Forty explained
Palantir showed strong financial results in its third quarter. The company’s performance caught many people’s attention. Let’s break down the key numbers.
First, let’s talk about revenue. Palantir brought in $558 million. This was a solid 16% increase compared to the same time last year. Their commercial revenue, which comes from business clients, grew even faster. It jumped 23% to $251 million. This shows more companies are using Palantir’s software.
Next, we look at net income. This is how much profit the company actually made. Palantir reported a net income of $72 million. This is important because it marks their fourth quarter in a row being profitable. Being consistently profitable is a big sign of a healthy business.
Finally, let’s understand the Rule of Forty. This is a simple way to measure a software company’s health. You add the percentage of revenue growth to the percentage of profit margin. If the total is 40% or higher, the company is usually seen as doing very well. Palantir’s Rule of Forty hit an amazing 114% this quarter. This number highlights their strong growth and good profits combined.
Commercial growth and the NVIDIA partnership: what’s driving the surge
Palantir’s commercial business is really growing fast. This part of their company focuses on selling to other businesses. In the U.S., this growth was especially strong. Their U.S. commercial revenue went up by a big 33%.
This means more American companies are choosing Palantir’s software. They are adding new customers all the time. Also, existing customers are buying more of Palantir’s services. This shows businesses find their tools very useful.
A major reason for this success is their partnership with NVIDIA. NVIDIA is a top company that makes special computer chips. These chips are super important for Artificial Intelligence, or AI. Palantir is using NVIDIA’s advanced technology.
By working together, Palantir can offer faster and stronger AI solutions. This makes their platforms more attractive to businesses. The NVIDIA partnership helps Palantir reach a wider range of companies. It shows Palantir is a key player in the world of AI. This collaboration is a big part of what’s driving their recent surge in commercial sales.
Market reaction, short positions and Karp’s outspoken commentary
After Palantir shared its strong earnings, the market had a clear reaction. The company’s stock went up significantly. This shows that investors were happy with the financial results, especially the big jump in commercial sales and the company’s continued profitability.
However, Palantir is also a stock with many short positions. This means a lot of investors are “shorting” the stock. To short a stock means they are betting its price will go down. They borrow shares, sell them, and hope to buy them back later at a lower price to make a profit. The fact that so many people are shorting Palantir shows there’s still some doubt or disagreement about its future value, even with good news.
Adding to the conversation is CEO Alex Karp. He is known for his outspoken commentary. Karp often shares strong opinions about the company and the tech world. His words can be very confident, sometimes even a bit provocative. This style can energize supporters but also draw criticism. His public statements often play a role in how the market views Palantir, adding another layer to the stock’s story beyond just the numbers.
Fonte: Fortune.com
