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Palantir Technologies shares fell about 8% in Tuesday’s premarket trading, extending the negative reaction to an earnings report that beat analyst estimates and came with a higher full-year revenue forecast.
The stock was down 8.15% at $163.80, according to Benzinga Pro data cited in Benzinga’s report published at 6:24 a.m. EST on Tuesday, November 3. That is the quote reported at that time, not a live price or the regular-session opening price.
The premarket move is a new development after JBizNews’s earlier coverage of Palantir’s third-quarter earnings and Monday’s after-hours reaction.
Strong earnings, weaker contract-growth rates
Palantir reported third-quarter revenue of $2.313 billion, up 96% from a year earlier. Adjusted earnings were 44 cents a share. Benzinga put analyst expectations at $2.18 billion in revenue and 41 cents a share.
Benzinga attributed the selling pressure to investor concern about slower contract growth and Palantir’s valuation, despite the earnings beat and stronger outlook.
The company’s earnings release showed total contract value of $2.918 billion, up 6% year over year. U.S. commercial total contract value was $1.463 billion, up 11% year over year.
Benzinga compared those growth rates with 49% for total contract value and 153% for U.S. commercial contract value in the previous quarter. The comparison is between growth rates reported in successive quarters. It does not mean contract value fell 6% or 11% from the prior quarter.
Contract value is also different from recognized revenue. U.S. commercial revenue rose 148% year over year to $984 million in the third quarter, according to Palantir’s release.
Higher revenue forecast
Palantir raised its 2026 revenue forecast to a range of $8.530 billion to $8.534 billion. For the fourth quarter, it forecast revenue of $2.649 billion to $2.653 billion.
Those figures left investors weighing rapid sales growth and a higher outlook against the pace of new contract activity. Tuesday’s quoted decline occurred before the regular U.S. stock-market session.
JBizNews Desk
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