Key Morningstar Metrics for Palantir Technologies
What We Thought of Palantir Technologies' Earnings
Palantir Technologies PLTR reported robust third-quarter results, with the firm's top line growing 30% year over year to $726 million and operating margins expanding to 15.6% from 7.2% a year ago. US commercial customers drove the top line, with sales from the segment growing 54% year over year.
Why it matters: Palantir remains one of the clearest beneficiaries of an uptick in demand for artificial intelligence solutions. The firm's AI platform, AIP, continued to fire on all cylinders in the quarter, with demand from both commercial and government clients.
The bottom line: With another better-than-expected quarter in the books, we are raising our fair value estimate to $21 per share from $19. While we view the stock as materially overvalued, we remain optimistic about the firm's growth and margin expansion opportunity in the coming years.