According to Fortune, Palantir reported $1.18 billion in third-quarter earnings that narrowly beat analyst forecasts, with Q4 guidance also exceeding Wall Street expectations. Despite the positive numbers, shares fell 7.95% on Tuesday as analysts questioned whether performance justifies the company’s valuation. CEO Alex Karp declared Palantir “the first company to be completely anti-woke” during Monday’s earnings call, while describing his company’s culture as “cultus.” The company saw U.S. government revenue jump 52% year-over-year to $486 million, representing nearly half its total business. Karp specifically mentioned supporting ICE and Israel’s Ministry of Defense, acknowledging these partnerships are controversial while expressing confusion about why.
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The Karp culture crusade
Here’s the thing about Alex Karp – he’s not shy about his beliefs. He’s called wokeness “a thin pagan religion” and “the central risk” to both Palantir and America. But his political journey has been… complicated. He was a major Biden donor, said he’d vote against Trump, yet now his CTO is dining at the White House with the former president’s administration. Basically, he seems to have found that anti-wokeness sells, especially to certain government clients.
And the “cultus” comment is fascinating. Most CEOs talk about culture – Karp talks about religious worship. He wants Palantir to remain as “unique” as it was 20 years ago, which apparently means continuing to support “making the American warfighter fight the way the American warfighter is born to fight.” Whatever that means exactly.
The government cash machine
Let’s talk numbers. Almost half of Palantir’s business comes from Uncle Sam – $486 million last quarter alone, up 52% from last year. They’re working with everyone from the Department of Defense to ICE to the CDC. In the first three quarters of 2025, they pulled in nearly $1.3 billion from government contracts according to their financial disclosures.
But here’s where it gets sticky. That $30 million contract to build “ImmigrationOS” for tracking self-deportations? The partnership with Israel’s Ministry of Defense during the Gaza war? These are the deals that draw ethical questions and calls for investigations. Karp says he doesn’t understand why it’s controversial – but come on, you’re building software for some of the most sensitive government operations imaginable.
Valuation reality check
Despite the 154% stock surge this year, Tuesday’s 7.95% drop tells another story. Analysts are getting nervous that even with beating expectations, Palantir’s valuation might be getting ahead of itself. The company trades at what, 20 times sales? Something like that. When you’re that expensive, you need to deliver blowout results every single quarter.
Karp’s response to skeptics? “Get some popcorn. They’re crying.” That’s some serious confidence from a guy whose stock just took a nearly 8% hit. But look – the numbers don’t lie. Government business is booming, commercial revenue is growing, and they’re crushing it with AI platforms. The question is whether the current political positioning is a sustainable long-term strategy or just riding a particular cultural moment.
Working class champion?
One of Karp’s more interesting claims is that Palantir helps spread GDP to the working class. He says their AI tools let people without college degrees create more value than those with higher education. And he claims they’ve helped make American workers rich through investment.
But let’s be real – when your business depends heavily on government contracts and controversial defense work, the “working class champion” narrative feels a bit… convenient. It’s great that the stock is up 154% for investors, but how many actual working-class Americans own Palantir shares versus institutional investors and wealthy individuals?
The company’s future likely depends on whether Karp’s unapologetic approach continues to resonate in Washington and on Wall Street. For now, the numbers suggest his strategy is working – even if not everyone’s buying the narrative.
