Earnings per share were 21 cents, compared with the 17 cents analysts expected on average.
Revenue came in at $1.18 billion, which can be weighed against the $1.09 billion the market expected on average. This represents an increase of 63 percent compared to the third quarter of last year.
The company is now also forecasting $1.33 billion for the current quarter, higher than analysts' expectations of $1.19 billion.
For the full year, Palantir now expects revenue of approximately $4.4 billion, also higher than the expected $4.17 billion.
Is controversial
Palantir, founded in 2003, has built its success on delivering software and technical AI solutions to mostly defense companies – and in that regard has benefited from close ties to the government in Washington.
The company is controversial, including for its involvement in government programs to control migrants and for its ties to Israeli authorities.
Prior to the report, the stock had risen by just over 173 percent so far this year – and is thus among the top five on the New York Stock Exchange's broad S&P 500 index.
“Most expensive I've seen”
Meanwhile, Palantir remains something of a mystery to investors. The stock is the most expensive on the S&P 500 in terms of price-to-earnings ratio, and the company has now climbed to 21st place on the list of the world's most valuable publicly traded companies.
"The valuation is our biggest obstacle. The most expensive I've seen in my career," says Sanjit Singh, an analyst at major bank Morgan Stanley, who advises his clients to wait before buying the stock.
Palantir's stock rose sharply in after-hours trading on the New York Stock Exchange minutes after the report, but then fell back and was up 0.5 percent after about 20 minutes.
