PomegraPalantir Stock Falls 1.7% on Q3 Earnings as Contract Growth Slows
Why did Palantir stock fall 1.7%?
Palantir (PLTR) stock fell 1.7% to $175.40 on Tuesday after its Q3 earnings showed total contract value up just 6% from a year earlier, versus 49% growth in Q2.
Key numbers
| Q3 revenue | $2.313B+96% YoY |
|---|---|
| Q3 total contract value | $2.918B+6% YoY |
| Q2 total contract value | $3.373B+49% YoY |
| Q3 U.S. commercial contract value | $1.463B+11% YoY |
| 2026 revenue guidance | $8.530-8.534BRaised |
| Nov 3 close | $175.40-1.65% |
What happened
Palantir (PLTR) stock fell 1.7% to $175.40 on Tuesday after its Q3 earnings showed total contract value up just 6% from a year earlier, versus 49% growth in Q2. Total contract value is the dollar amount of new deals signed. Sales still jumped 96% to $2.31 billion, and the company raised its full-year sales forecast to about $8.53 billion. Shares were down about 6% before the market opened, then recovered some of that loss by the close.
Why it matters
Palantir is priced as a company that will keep growing very fast, so any sign of slower new deals gets attention. The stock trades at about 86 times next year's expected profits (forward P/E), a high price that leaves little room for disappointment. New contract value is an early signal of future sales, and it fell from $3.37 billion in Q2 to $2.92 billion in Q3. Analysts linked the slowdown to shorter contract lengths.
Who this affects
- MarketmixedMedium impact
- Software investors weigh strong sales against slowing new deals.
- CompanymixedMedium impact
- Shareholders see record sales but weaker new-deal growth.
- CompetitorsneutralLow impact
- Snowflake and Datadog rose Tuesday; little direct spillover.
- IndustryneutralLow impact
- Investors may scrutinize contract lengths across AI software firms.
Palantir vs Snowflake, Datadog
How we got here
Palantir reports record Q4 2025 total contract value of $4.262B, up 138%.
Q2 results show total contract value of $3.373B, up 49% from a year earlier.
Q3 results beat estimates; total contract value rises only 6% to $2.918B.
Shares close down 1.65% at $175.40 after falling about 6% early.
What to watch
- Q4 sales guidance of about $2.65B implies slower growth than the prior quarter's 20%.Q4 2026
- Whether total contract value growth recovers as shorter-term deals are renewed or extended.Q4 2026
- Remaining performance obligations, flat at $4.9B from Q2 to Q3, for signs of stalling.Q4 2026
Educational content only. Not investment advice.
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