STOCKS | D.A. Davidson and Dan Ives Back Palantir After Strong Quarterly Results

Palantir (PLTR) fell 6% in premarket trading Tuesday as the broader AI sector plunged. According to Sina Finance, the company reported strong quarterly results Monday evening, drawing support from Wall Street analysts. D.A. Davidson analyst Gil Luria said the results again exceeded expectations by wide margins, with revenue growth accelerating amid surging U.S. demand for AI solutions. He said Palantir’s commercial growth thesis had been validated, its commercial revenue exceeded government revenue for the first time, and the company remained one of the software sector’s most compelling investments. Under CEO Alex Karp, Palantir’s third-quarter results contrasted with those of large cloud providers such as Amazon, which were fueling a new wave of technology-stock selling. Revenue growth accelerated to 96% from 93% in the previous quarter. U.S. commercial sales rose 148% year over year, while U.S. government revenue growth increased to 96% from 90%. Revenue and earnings both exceeded analysts’ raised expectations. The company raised its full-year adjusted operating income guidance by $354 million to $5.247 billion. It also increased its free cash flow guidance by $300 million to $4.9 billion, as the market remained highly sensitive to technology companies’ free cash flow. Dan Ives, a partner at Yorkville-Ives, said the quarter reinforced his view that 2027 would be a turning point for AI monetization and that Palantir remained his top software-sector pick.