Palantir Technologies (NASDAQ:PLTR) continues to eviscerate expectations, producing world-beating numbers time and again. Its most recent Q3 2025 earnings release was more of the same.
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Revenues steamrolled ahead by 63% on a year-over-year basis, while U.S. commercial sales increased by an astonishing 121% from Q3 2024. The company’s Rule of 40 score of 114% represented a 20-point increase sequentially, and left its software peers far back in the dust.
There’s no denying that Palantir the company is delivering the goods. But is it a good investment?
Top investor Julian Lin is convinced otherwise, arguing that the company’s steep valuation already prices in more than a decade of aggressive expansion. In other words, the exceptional is now fully expected.
“The company’s third quarter results could only be described as incredible, but it appears that there are few still surprised by the excellence,” notes the 5-star investor, who is among the top 1% of TipRanks’ stock pros.
Lin is more than ready to acknowledge Palantir’s “unprecedented” revenue growth, “astounding” non-GAAP margin, and “bulletproof” balance sheet. He also highlights Palantir’s customer-focused engagement, whereby company engineers work directly with customers, which has helped to support so much AI-propelled growth.
In fact, the investor is ready to declare that Palantir sits in a “league of its own.” He even finds himself largely in agreement with CEO Alex Karp’s assertion that its Q3 numbers reflect “arguably the best results that any software company has ever delivered.”
And yet, Lin believes that the accelerating revenue growth will eventually slow. That doesn’t necessarily mean that the stunning results will end, however.
“I am merely pointing out that there are steep mathematical challenges that may make it exceedingly difficult to continue the streak of accelerating top-line growth,” explains Lin.
Palantir has more than earned a premium valuation, adds the investor. Just not the 7.7x 2034 expected sales multiple at which PLTR was recently trading. Lin just doesn’t see how Palantir sustains its aggressive growth rate so far into the future.
“I reiterate a Strong Sell rating on PLTR, citing the excessive premium and the likelihood of growth deceleration leading to valuation contraction,” explains Lin. (To watch Julian Lin’s track record, click here)
Wall Street also appears cautious when it comes to PLTR. With 3 Buys, 11 Holds, and 2 Sells, PLTR carries a consensus Hold (i.e., Neutral) rating. Its 12-month average price target of $187.87 implies an upside of about 10%. (See PLTR stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.