Palantir’s AI push tests bears who doubt it can keep winning

Palantir's absorption has been trying to person radical for the past twelvemonth that its AI level isn't simply a fancy demo, but besides a solution that corporations and governments are anxious to acquisition successful ample quantities.

The information analytics company's astir caller 4th backs this up with accelerated growth, rising margins, and fantabulous currency flow. Those metrics don't align with what galore big-name investors are saying: That the full AI market, encompassing hardware, software, and the infrastructure that connects them all, appears excessively overheated.

Palantir is 1 of the astir breathtaking bundle names successful the AI stack close now, mostly owed to that tension. Bulls spot an motor that is increasing successful effect to U.S. demand, but is inactive not well-known extracurricular of the States.

And portion bears deliberation a spending roar whitethorn assistance someone, it could dilatory down erstwhile hyperscalers and businesses usage up what they've already acquired.

Palantir reported grounds gross of $1.18 cardinal successful Q3 2025, acknowledgment to a surge successful commercialized enactment successful the U.S., with authorities enactment besides making a important contribution.

Profitability accrued alongside growth, indicating that operational leverage is starting to instrumentality effect arsenic deployments rise.

• The firm's U.S. commercialized gross doubled successful 1 twelvemonth and grew faster than elsewhere.

• With much than $5 cardinal and $10 cardinal contracts, declaration worth deed an all-time high.

• The debased to mid-40s for currency from operations and escaped currency travel margins persisted.

Management expects quarterly income to spell up again and GAAP operational profitability to enactment high. The steadfast besides ended the 4th with a batch of currency and nary contiguous worries astir liquidity.

This gave it state to walk portion allowing shareholders immoderate flexibility via blimpish stock-based wage and the quality to bargain backmost shares successful the future.

Skeptics reason the AI rhythm is moving faster connected proviso than connected durable end‑demand. They pass that accelerated hardware improvements could compress the economics of exemplary grooming and inference, rippling into bundle pricing and elongating return‑on‑investment timelines for customers.

According to Business Insider, Michael Burry is publically opposing respective AI leaders, including Palantir, framing the infinitesimal arsenic a imaginable echo of anterior tech manias successful which large companies inactive experienced heavy aggregate compression.

• If concern pilots don't go widespread, U.S. commercialized maturation whitethorn diminution from triple-digit levels.

• If customers renegotiate owed to falling portion costs, bundle pricing and margins whitethorn suffer.

• If export rules, procurement timing, oregon predetermination twelvemonth budgets change, authorities maturation whitethorn go much unequal.