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 dropped 7.95% on Tuesday, erasing an initial 7% spike, as analysts expressed concerns about whether the performance justifies the company’s valuation. CEO Alex Karp declared Palantir “was really the first company to be completely anti-woke” and described wokeness as “a thin pagan religion” that poses a “central risk” to the company and the country. The company saw U.S. government revenue jump 52% year-over-year to $486 million, representing nearly half its total business. Karp also revealed Palantir’s strategic partnership with Israel’s Ministry of Defense and a $30 million contract for “ImmigrationOS” software.
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The anti-woke playbook
Alex Karp isn’t just running a tech company – he’s leading what he calls a “cultus,” which basically means a system of religious worship. And his religion appears to be anti-wokeness. He’s been remarkably consistent about this, calling wokeness “corrupting and corroding our institutions” last year and now doubling down with the “pagan religion” comparison. What’s fascinating is how he’s threading this political needle. He donated to Biden’s campaign but says he’s “not thrilled” with Democrats. His co-founder Peter Thiel backed Trump, which Karp said made things harder for the company. Now he’s cozying up to the Trump administration again, sending his CTO to White House dinners. It’s almost like he’s trying to position Palantir as above politics while being deeply political.
Where the real money comes from
Here’s the thing about all that anti-woke rhetoric: it plays really well with Palantir’s actual customer base. Almost half their revenue – $486 million last quarter – comes from U.S. government contracts. That’s up 52% from last year. They’re working with everyone from the Department of Defense and Army to Homeland Security, ICE, FBI, and CIA. They just landed that $30 million ImmigrationOS deal and have that strategic partnership with Israel’s Ministry of Defense. When you look at their financial disclosures, they’ve pulled in nearly $1.3 billion from the government in just the first three quarters of 2025. So all this talk about supporting “the American warfighter” and fighting adversaries? That’s not just ideology – that’s their business model.
The elephant in the room
Despite the earnings beat and Karp’s victory lap, Palantir stock still fell nearly 8%. And that tells you everything about the skepticism surrounding this company. Shares are up 154% year-to-date, which is absolutely insane by any measure. But analysts are clearly worried that even these strong numbers don’t justify the current valuation. Karp told investors to “get some popcorn” because critics are “crying,” but the market reaction suggests otherwise. When your stock drops on what should be good news, that’s usually a sign that expectations were even higher than the good news you delivered. The valuation concerns are very real, and no amount of anti-woke rhetoric can make that disappear.
But why is this controversial?
The most telling moment might be when Karp said “I don’t know why this is all controversial” about working with ICE and Israel’s military. Seriously? A company named after an all-seing crystal ball from Lord of the Rings, building AI systems for immigration enforcement and military operations in conflict zones, and he can’t understand why people might have concerns? Human rights groups have questioned whether Palantir’s tools are being used in ways that violate international law in Gaza. There are ongoing ethical debates about their work with ICE. But Karp seems genuinely perplexed by the criticism. It’s that combination – massive government surveillance capabilities plus complete lack of introspection – that makes Palantir such a fascinating and concerning company. They’re crushing it financially while operating in some of the most ethically fraught areas of technology. And their CEO either doesn’t get why that worries people or doesn’t care.
