Palantir shares fell more than 5% after the third-quarter report and are now 16% below their all-time high, as investors worried that total contract value (TCV) rose just 6% year over year after a 49% jump in the second quarter. Third-quarter revenue reached $2.31 billion, up 96%, with U.S. commercial revenue rising 148% to $984 million, and for the first time it exceeded U.S. government revenue. TCV reached $2.92 billion; CFO Dave Glazer said several large contracts were shorter than usual as customers began adopting its Sovereign AI capabilities, and the company expects these agreements to grow in size and duration. Total remaining deal value rose 55% to $13.4 billion, and the company raised its full-year revenue guidance to about 91% growth. The author says the valuation remains high at 108x forward P/E and 51x forward price-to-sales, but still holds the shares and sees the long-term opportunity as larger than any single year's price target.
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