Palantir's Revenue Growth Accelerates in Q3

Written by Emily J. Thompson, Senior Investment Analyst

SNOW+0.7%

PLTR-1.06%

Source: NASDAQ.COM

Updated: 4h ago

0mins

Source: NASDAQ.COM

Accelerated Revenue Growth: Palantir's revenue grew 63% year-over-year in Q3 2023, a significant acceleration from 48% in Q2, indicating strong market performance and customer enthusiasm for its AI platform.
Strong Commercial Revenue: U.S. commercial revenue surged 121% year-over-year in Q3, up from 93% in Q2, demonstrating Palantir's success in diversifying away from heavy reliance on government contracts.
Valuation Risks Emerge: Despite impressive growth rates, Palantir's forward P/E ratio of 167 suggests high market expectations for future growth, and any signs of deceleration could shake investor confidence and impact stock prices.
Optimistic Future Outlook: The company’s guidance for Q4 2024 implies a year-over-year growth rate exceeding 60%, and given Palantir's history of beating guidance, this could support its stock price in the short term.

SNOW

$212.75+Infinity%1D

Analyst Views on SNOW

Wall Street analysts forecast SNOW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SNOW is 285.29 USD with a low forecast of 237.00 USD and a high forecast of 325.00 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.

34 Analyst Rating

32 Buy

2 Hold

0 Sell

Strong Buy

Current: 211.270

Low

237.00

Averages

285.29

High

325.00

Current: 211.270

Low

237.00

Averages

285.29

High

325.00

Argus

Hold

Buy

upgrade

2026-01-08

Reason

Argus

Price Target

AI Analysis

2026-01-08

upgrade

Hold

Buy

Reason

Argus upgraded Snowflake to Buy from Hold.

Argus

Hold

Buy

upgrade

$300

2026-01-08

Reason

Argus

Price Target

$300

2026-01-08

upgrade

Hold

Buy

Reason

As previously reported, Argus upgraded Snowflake to Buy from Hold with a $300 price target. The firm sees a "good entry point for investors" after the market took shares down a notch following a disappointing Q3 report, the analyst stated. While acknowledging that Snowflake's consumption-based revenue model may lead to some inconsistent results from time to time, the firm highlights that the company continues to grow revenue near management's "north star" target of 30%, which it notes is much faster than most companies in the IT space, "let alone the market as a whole," while margins are also expanding.

Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for SNOW

Unlock Now

Raymond James

NULL

Outperform

initiated

$274 -> $250

2025-12-15

Reason

Raymond James

Price Target

$274 -> $250

2025-12-15

initiated

NULL

Outperform

Reason

Raymond James assumed coverage of Snowflake with an Outperform rating with a price target of $250, down from $274. Snowflake is transitioning from a cloud data warehouse into a broader data, application, and AI platform, positioning the company to capture a larger share of enterprise workloads, and as AI adoption accelerates, platform convergence increases, and open data architectures become standard, Snowflake has multiple growth drivers and ways to expand its strategic relevance with large customers, the analyst tells investors in a research note. While competitive pressures from other leading database vendors remain central debates, Snowflake's platform evolution, expanding use cases, and potential for more durable consumption trends provide a credible path to sustaining premium growth and margins, the firm added.

Citi

Buy

downgrade

$310 -> $300

2025-12-08

Reason

Citi

Price Target

$310 -> $300

2025-12-08

downgrade

Buy

Reason

Citi lowered the firm's price target on Snowflake to $300 from $310 and keeps a Buy rating on the shares. The company reported a lower fiscal Q3 beat relative to expectations but issued strong Q4 sales guidance, the analyst tells investors in a research note.

About SNOW

Snowflake Inc. is a data cloud and artificial intelligence company. Its platform is the technology that powers the AI Data Cloud, enabling customers to consolidate data into a single source of truth to drive meaningful insights, apply artificial intelligence (AI) to solve business problems, build data applications, and share data and data products. It provides its platform through a customer-centric, and consumption-based business model. Its cloud-native architecture consists of three independently scalable but logically integrated layers across compute, storage, and cloud services. The compute layer provides dedicated resources to enable users to simultaneously access common data sets for many use cases with minimal latency. The storage layer ingests massive amounts and varieties of structured, semi-structured, and unstructured data to create a unified data record. Its ClearQuery platform allows users to rapidly search, explore, and analyze their data using natural language queries.

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.