$PLTR · Schwab Network · 2026-11-02

But we have news about Palantir, so let's move directly to their figures for the third fiscal quarter. Their earnings per share amounted to $0.44. The estimates were for $0.41, so we exceeded expectations here.

As for revenues, they amounted to 2.31 billion, which is better than the estimates that were expecting 2.17 billion. They also provided some projections for the next quarter, with fourth-quarter revenues ranging between 2.65, in fact, it is exactly 2.65.

Estimates were predicting less than 2.5, so it's better than the forecast here, and higher than the consensus of analysts .

They also provided their revenue forecast for the fiscal year at 8.53 billion. The market was expecting a range between 8.15 and 8.16, which is their previous range. Therefore, they have higher estimates than the consensus of analysts in this aspect as well.

Their adjusted operating profit was 5.25 billion. The estimates were 4.79 billion.

Overall, I mean that we are looking at results that have exceeded expectations in almost every respect. Commercial revenue grew by 148% year-on-year in the third quarter. Total revenue growth was approximately 96% year-on-year.

They are also raising their adjusted free cash flow guidance to between $4.8 billion and $5 billion from a previous range of between $4.5 billion and $4.7 billion. They are also raising their fourth-quarter commercial revenue guidance to 143% year-over-year growth for the fiscal year.

This represents a slowdown of approximately 5% from the growth we achieved in the third quarter. We are seeing a slight move towards the downside, with stocks fluctuating around the level line.

Alex, what catches your attention here regarding the possible reason why we haven't seen a rise here? Yes, I was looking back at some numbers from the last few chapters. Expectations for Palantir continued to rise because it was a company that not only met expectations but also achieved successive successes in more difficult situations.

Several quarters were predicted to be the peak of the company's growth. The last quarter in particular was expected to be that peak, but they managed to postpone it. I think we've finally reached that moment now.

But when you look at this from the perspective of exceeding expectations, they exceeded earnings per share by an average of 18% in the last two quarters of their fiscal year 2026. Today's exceedance is estimated at about 7%.

Now, the 7% figure is outperforming the market, as we discussed at the beginning of our segment before the bell rang, where the overall profit surprise for about 60% of companies was only about 3%.

So, it essentially doubles what the rest of the market has achieved.

But compared to itself, this situation from a macro perspective reminds me of 2022 when inflation fell, and economists seemed unable to keep up with the recorded figures. But they are catching up eventually, and it seems we have finally reached a point where analysts are starting to follow the Palantir story.

Although the gap remains at 7%, they were 18% behind in the last few quarters.

Sam, we just spoke with John McPeak about this and his expectations for Palantir, which were very high. The company has exceeded even his own standards by more than he expected.

I mean, we are seeing commercial revenues exceeding estimates. It has increased by 148% year-on-year. I think Wall Street was expecting growth in the range of only 130%. It is also the first time that government revenues have exceeded that , which is very important because its analysis shows that the business opportunity is actually a much larger market than the government market based on our discussion.

But he expected it to rise even higher. We're hovering around a level of no change here, despite the numbers he said they would achieve.

Yes, it's interesting. I mean, in response to what Alex was saying, and I mentioned this to Jett at the beginning of the program. It seems that single-digit performance with some of these companies, where expectations are very high, is treated as if the results are exactly in line with expectations.

So, as you know, we are obviously very accustomed to the kind of numbers that Palantir achieves. You are looking forward to continued growth, however, we are still somewhat surprised by the accelerating pace of work.

Good point , but you're just wondering whether this has anything to do with expectations before the results or with the company's position; Given the reaction we've seen to other names, I know I was speaking to an analyst earlier today who said some of the high expectations have been somewhat tempered.

We know that Palantir has not been immune to the broader downturn we have seen in the technology sector, but there is a certain perception associated with this name. And we were just talking about this with John, as you said, Mali, that while AI companies are trying to prove themselves in terms of return on investment, Palantir has already clearly demonstrated its ability to generate profit.

I mean, you know, he was saying that the company's time is much higher than its revenue at the moment . So, yes, let's see, because I think part of the conversation also revolved around the fact that the cost of capital concerns in this market do not apply to Palantir, thanks to it being highly protected by government and commercial contracts that are growing by 148% and 96%.

She will always have companies and governments to work with.

Alex, I know you have a quick idea you'd like to bring up before we move on to OnSemi, which has just released its results. It rises slightly here. It is closer to stability without change.

I think listening to Alex Karp on the call will play a big part in determining whether the outcome will be a positive or negative reaction, but today I spoke with Kyle Redhead from Milk Road on the Next Gen show.

We reviewed the Palantir forecast. He only said positive things about the company.

Many of the emotions that Sam had just described were repeated, but he said the main danger he sees is the compression of complications.

In this market where everything is scrutinized and examined rigorously, I wouldn't be surprised after that conversation if we saw good numbers that weren't matched by rewards for Palantir, simply because its price reflects a story very far into the future.

Good. Well, Palantir's trajectory has changed for the better. We are seeing an increase of approximately 1.75% here in terms of the reaction. Now, we are at our highest level.