Palantir closes at $154.99 after consecutive losses despite 96% revenue growth
Key Facts
Palantir shares closed at $154.99 on November 5, extending their daily losing streak to eight consecutive sessions, according to EL7 daily closing data. The decline came in a session marked by broad selling in artificial intelligence stocks, as the Nasdaq Composite fell 5.5%, the S&P 500 dropped 4.4% and the Dow Jones declined 3.4%, according to the Associated Press. Palantir had reported third-quarter 2026 results showing rapid revenue growth alongside slower growth in the total value of closed deals. Revenue reached $2.313 billion, up 96% year over year and 20% from the previous quarter, according to the company’s filing with the U.S. Securities and Exchange Commission. The value of closed deals was $2.918 billion, up 6% year over year. The figures show revenue growing at a different pace from the value of deals the company closed during the quarter, though sources do not establish that this divergence caused the stock’s decline on November 5.
The consecutive losses were part of a slide that began before the latest results session: the stock closed at $184.11 on October 30, then at $178.34 on November 2, $175.40 on November 3 and $171.70 on November 4, before closing at $154.99 on November 5, according to EL7 data. The stock had fallen about 3% in extended trading after the third-quarter results were announced, Reuters reported. In the following session, William Blair analysts said some investors might be disappointed by U.S. commercial bookings. The comment places commercial deal performance within the market’s reading of the results, but does not identify the cause of the stock’s subsequent move. The November 5 close also coincided with broader pressure on artificial intelligence stocks, as the Associated Press cited concerns about high borrowing costs and a possible slowdown in data-center construction, as well as elevated valuations for AI stocks.
On the revenue side, U.S. commercial activity was the leading reported growth driver. Its revenue rose to $984 million in the third quarter, up 148% year over year and 29% from the previous quarter, surpassing U.S. government revenue for the first time in the company’s history, according to the filing. U.S. government revenue was $953 million, up 96% year over year and 18% quarter over quarter. The comparison shows U.S. commercial revenue exceeded U.S. government revenue during the quarter, even as the government segment continued to post strong growth. In closed U.S. commercial deal value, Palantir recorded $1.463 billion, up 11% year over year. Reuters said growth in that value slowed from more than 153% in the second quarter to 11% in the third, placing the quarter’s result against a steep quarterly comparison in the growth rate.
The company reported other indicators of commercial contracting activity. Remaining U.S. commercial deal value reached $6.517 billion in the third quarter, up 79% year over year and 4% from the previous quarter. Palantir closed 212 deals worth at least $1 million each during the quarter, along with 107 deals worth at least $5 million and 64 worth at least $10 million, according to its filing. Reuters quoted the company as saying it signed several eight-figure deals during the quarter, but that they were shorter in duration than usual as customers accelerated their adoption of early sovereign AI capabilities. These details set the increase in closed deal value alongside deal volume, remaining commercial business and the duration of some contracts. They provide a fuller view of the contracting indicators the company reported, alongside quarterly revenue growth.
Palantir raised its fiscal 2026 revenue forecast to a range of $8.530 billion to $8.534 billion, according to its filing. It also raised its U.S. commercial revenue forecast to more than $3.559 billion, equivalent to growth of at least 143% for the year. For the fourth quarter of 2026, the company forecast revenue of $2.649 billion to $2.653 billion. Reuters said that range exceeds the $2.46 billion average analyst estimate compiled by LSEG. The forecasts lay out management’s expected revenue trajectory for the next period and the full year, as growth rates for revenue and signed deals diverge. Fourth-quarter results, when reported, will provide a new measure against which to compare actual revenue with the forecast.