Palantir Reports 63% Revenue Growth in Q3, But High Valuation Poses Significant Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 30 2025
0mins
Source: NASDAQ.COM
- Significant Revenue Growth: Palantir reported a 63% year-over-year revenue increase in Q3, marking its ninth consecutive quarter of acceleration, which highlights the company's strong performance in the AI platform market, although its high valuation raises concerns about potential future stock price corrections.
- Substantial Net Income Increase: Non-GAAP net income surged 110% to $0.21 per diluted share, indicating ongoing improvements in profitability; however, with a staggering 115 times sales ratio, investors are advised to exercise caution.
- Expansive Market Outlook: According to Grand View Research, the AI/ML platform market is projected to grow at a 38% annual rate through 2033, suggesting that Palantir could see even faster revenue growth if it maintains its leadership in data analytics and decision-making tools.
- Historical Warning: Despite receiving high praise for its products, historical data shows that stocks with a price-to-sales ratio above 100 over the past 20 years have typically experienced declines of at least 65%, prompting investors to remain vigilant about potential risks.
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Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PLTR is 192.88 USD with a low forecast of 50.00 USD and a high forecast of 255.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 157.350
Low
50.00
Averages
192.88
High
255.00
Current: 157.350
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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