The CEO Called It Otherworldly. He Wasn't Exaggerating.

Palantir's (PLTR) CEO called the quarter otherworldly, and he wasn't exaggerating.

Revenue grew 93% year over year to $1.935 billion. US commercial revenue grew 149%.

The Rule of 40 score, which adds growth and profit margin together and considers anything above 40 healthy, came in at 155%.

Alex Karp told CNBC to forget consensus and said no business at this scale has grown even half this much.

He’s not wrong, but look at the deal flow underneath it. 220 contracts worth a million dollars or more, 98 of them over five million, 70 over ten million. US commercial revenue has jumped 380% since 2024, and the US business now accounts for more than 81% of the company.

They threw $1.22 billion in free cash flow at a 63% margin on top of it, then raised full-year guidance.

That's a crazy quarter by any standard you want to use.

And you know what?

It’s caught many traders on the wrong side.

Puts were running 1.5 to 1 against calls going into that report. Traders have been leaning hard against a stock already down 29% on the year, which tells you how much pessimism was sitting in it.

What I need from the chart

Palantir closed at $125.65 yesterday, pinned under its 50-day at 130.49 since June. The upper Bollinger Band sat at 137.98 and had been acting like a lid all summer.

I wanted a break above $140 because it clears both in one shot. We’ve been trading above in the pre-market.

Now the 200-day at $152.62 is the question. That's the level this stock hasn't touched since spring, and clearing it separates a real recovery from a gap that fills by Friday.

I'm looking for $160.