Palantir Technologies Inc. PLTR is scheduled to report its third-quarter 2026 results on Nov. 2, after the bell.
The Zacks Consensus Estimate for earnings in the to-be-reported quarter stands at 41 cents, indicating 95.2% growth from the year-ago reported quarter. The consensus estimate for total revenues stands at $2.17 billion, indicating 83.9% year-over-year growth. There have been two downward revisions to analyst estimates in the past 30 days.
The company has a strong history of earnings surprises. Earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average earnings surprise of 15.8%.
PLTR’s Lesser Chance of Q3 Earnings Beat
Our proven model doesn’t conclusively predict an earnings beat for PLTR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
PLTR has an Earnings ESP of -2.44% and a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
PLTR’s All-Round Healthy Business Should be the Driver in Q3
We expect a significant year-over-year improvement in the company’s top line in the to-be-reported quarter, driven by healthy business from existing and new customers, strengthening both the Government and Commercial segments.
The consensus estimate for Government revenues stands at $1.04 billion, indicating 63.9% year-over-year growth. The consensus estimate for Commercial revenues is pegged at $892.1 million, suggesting more than 100% year-over-year growth.
PLTR Stock is Experiencing a Rally
Palantir shares have gained 60% over the past three months and 36% over the past six months. This performance clearly indicates ongoing strength in the stock.
Based on the trailing 12-month EV-to-EBITDA, PLTR is currently trading at 217.71X, way above the industry’s 12.13X. If we look at the forward 12-month Price/Earnings ratio, the company’s shares are currently trading at 89.01X forward earnings, well above the industry’s 28.30X.
PLTR Stock: Hold Before Q3 Earnings
Palantir's robust AI-driven demand, expanding customer base and strong momentum across Government and Commercial businesses support its long-term growth prospects. However, the stock's impressive rally and substantial valuation premium over the industry suggest that much of the anticipated growth is already priced in. Moreover, downward earnings estimate revisions and an unfavorable Earnings ESP raise concerns about a potential earnings disappointment. While Palantir's solid fundamentals and expanding market opportunities warrant optimism, its stretched valuation leaves limited room for execution setbacks. Investors should therefore maintain their existing positions and avoid aggressive buying ahead of earnings, making PLTR a prudent hold for now.
Peer View
Microsoft MSFT remains one of the most important comparisons because of its expanding enterprise AI ecosystem and deep integration of AI tools into corporate software environments. Microsoft benefits from enormous distribution through Azure and its productivity applications. Still, Palantir differentiates itself by focusing heavily on linking AI directly with operational data and workflows. Microsoft remains a formidable competitor, but Palantir’s specialized architecture could sustain demand in complex deployments where governance, integration and execution are critical.
Oracle ORCL is another relevant enterprise technology peer due to its extensive database, cloud infrastructure and business-application footprint. Oracle continues to expand its AI capabilities across enterprise systems, giving customers another pathway for integrating AI with critical corporate data. However, Palantir’s emphasis on building operational digital environments across disparate systems provides a different value proposition. Oracle has considerable scale, while Palantir is increasingly positioning itself as a specialized operating layer for AI-enabled decision-making.
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This article originally published on Zacks Investment Research (zacks.com).