Palantir (PLTR) is slated to release third quarter earnings after the bell Monday in a test of the AI stock’s recent run-up.
Palantir stock has risen more than 28% since its last quarterly report in August, ahead of the nearly 20% upswing seen in the “Magnificent Seven” Big Tech stocks during that time frame.
The defense tech firm is expected to report revenue of $1.09 billion for the September quarter, according to consensus estimates from Wall Street analysts tracked by Bloomberg. That would represent a 50% increase from the year-ago period
Within that figure, analysts project revenue from Palantir’s government contracts will hit $599 million, a 47% jump from last year, driven by deals with the US government. Analysts expect Palantir’s commercial segment to report revenue of $491 million, 55% higher than it reported in the third quarter of 2024.
The company is also expected to report adjusted earnings per share of $0.17, ahead of its EPS of $0.10 last year.
Options traders project the stock will rise or fall as much as 9% following Palantir’s results on Monday, per Bloomberg data. Historically, Palantir shares have moved even more than that following the company’s quarterly results, rising or falling as much as 14% after its earnings report, Bloomberg data shows.
Read more: Live coverage of corporate earnings
Palantir sells its artificial intelligence software to businesses and governments in the US and abroad. Its tech does everything from supply chain analysis to surveillance and identifying military targets. Its deals with the Israeli military and ICE have drawn public backlash.
In the company’s latest report after the market close, investors are watching for how the US government shutdown could dig into Palantir’s revenue and earnings guidance for the fourth quarter, analysts at Morgan Stanley and RBC Capital Markets said in notes to investors this month.
Palantir’s shares are up more than 170% for the year. The stock rose nearly 3% Monday ahead of its third quarter results.
The company’s past two quarterly reports surpassed Wall Street’s expectations on the top and bottom lines, but led to mixed results for the stock.
Shares fell after its first quarter results put its soaring valuation in focus. Then, in August, Palantir’s stock surged as its second quarter results showed the company’s US commercial segment exceeding analyst projections. The division posted revenue growth of more than 90% from the previous year. Palantir’s US commercial business saw revenue jump to $306 million during the second quarter from $159 million in the year-ago period.