Palantir Drops 5% on 11% U.S. Commercial TCV Growth — SkimNews
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- Palantir shares fell 5% Tuesday after third-quarter earnings, as analysts pointed to a slowdown in total contract value and other “forward indicators.”
- Palantir closed $1.5 billion in U.S. commercial TCV, up 11% from a year earlier, as commercial revenue topped government revenue for the first time.
- Palantir had closed a record $2.1 billion in U.S. commercial TCV in Q2, up 153% year over year, before reporting 11% growth in Q3.
- Piper Sandler said investors would seek evidence that the 11% U.S. commercial TCV growth was a duration effect rather than structural, while believing demand for Palantir’s solutions “very much outstrips supply.”
- Goldman Sachs noted that Palantir attributed part of the slowdown to shorter contract durations and said converting them into longer commitments was the key, which the company had done successfully in the past.
- Palantir reported revenue nearly doubled from a year earlier and exceeded $2 billion for the first time.
Why it matters: For Palantir shareholders, contract duration is the immediate test: U.S. commercial TCV grew 11%, versus 153% in the prior quarter, while revenue nearly doubled above $2 billion. Piper Sandler’s view that demand still outstrips supply keeps the focus on converting shorter bookings into longer commitments rather than customer appetite.
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