Why Palantir Technologies (PLTR) Shares Are Falling Today

What Happened?

Shares of data analytics company Palantir Technologies (NASDAQ:PLTR) fell 7.2% in the morning session after the company reported third quarter results, with lofty expectations and a significant rally heading into the prints making it hard for the stock to impress Wall Street. 

Management attributed the quarter’s strong results to rapid expansion in the U.S. commercial segment, especially as more enterprise clients accelerated adoption of the AIP (Artificial Intelligence Platform). CEO Alex Karp and Chief Revenue Officer Ryan Taylor noted a significant increase in large, organization-wide deals, highlighting the urgency among customers to transform operationally with AI. Taylor emphasized that “customers are converting to larger enterprise agreements in short time frames,” reflecting a shift toward broader AI deployments across entire businesses. 

Looking forward, Palantir’s raised guidance relies on continued momentum in enterprise AI adoption, particularly in the U.S. The company expects its AIP to remain a central growth engine, as organizations increasingly seek to integrate advanced AI capabilities into core operations.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Palantir Technologies? Access our full analysis report here.

What Is The Market Telling Us

Palantir Technologies’s shares are extremely volatile and have had 46 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 8 days ago when the stock gained 3.3% as reports revealed the company was close to signing a letter of intent with Poland's Ministry of Defense. The potential agreement aimed to improve collaboration in cybersecurity and artificial intelligence. This news added to a series of positive developments for the data analytics firm. Palantir also recently formed a multi-year strategic partnership with Lumen Technologies to help businesses adopt AI more quickly. In another development, Red Cat Holdings announced a successful flight test of its drone equipped with Palantir's software, which allowed the drone to complete missions in areas without GPS.

Palantir Technologies is up 156% since the beginning of the year, and at $192.75 per share, it is trading close to its 52-week high of $207.18 from November 2025. Investors who bought $1,000 worth of Palantir Technologies’s shares 5 years ago would now be looking at an investment worth $17,980.

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