According to Fortune, Palantir reported $1.18 billion in third-quarter earnings that narrowly beat analyst forecasts, with fourth-quarter 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” and described his company’s culture as “cultus” – a system of religious worship. The tech giant’s U.S. government revenue surged 52% year-over-year to $486 million, representing almost half its total success. Karp specifically highlighted work with ICE and Israel’s Ministry of Defense while expressing confusion about why these partnerships draw controversy.
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The Karp culture wars
Here’s the thing about Alex Karp’s “anti-woke” positioning – it’s not exactly consistent. He donated to Biden’s campaign, said he’d vote against Trump, and acknowledged that Peter Thiel’s Trump support made things harder for Palantir. But now he’s calling wokeness a “thin pagan religion” and cozying up to Trump’s administration. It feels less like principled opposition and more like whatever positioning happens to work commercially at the moment. And let’s be real – describing your company culture as “cultus” is either incredibly bold or deeply concerning, depending on your perspective.
The government cash machine
Almost half of Palantir’s revenue comes from U.S. government contracts, and that pipeline is growing fast – up 52% from last year. They’re working with everyone from the Department of Defense to ICE to the CIA, pulling in nearly $1.3 billion from taxpayers in just the first three quarters of 2025. The company’s own disclosures show this isn’t slowing down anytime soon. But here’s the question: when your business becomes this dependent on government work, what happens during administration changes or budget fights?
The controversy blindness
Karp’s “I don’t know why this is all controversial” line about working with ICE and Israel’s military operations is either deliberately naive or willfully ignorant. Palantir’s tools are being used in conflict zones where human rights groups have raised serious concerns about potential international law violations. Their $30 million contract to build “ImmigrationOS” for tracking deportations? That’s not exactly uncontroversial territory. When your company name comes from a Lord of the Rings all-seeing crystal ball and you’re building systems that track people’s movements, maybe don’t act surprised when people get nervous.
The valuation reality check
Despite the 154% stock surge this year, Tuesday’s 7.95% drop tells another story. Analysts are clearly worried that even strong growth can’t justify current prices. Karp told investors to “get some popcorn” because critics are “crying” – but that kind of gloating usually comes right before reality sets in. The company is spending heavily on research and hiring while facing increased scrutiny from lawmakers concerned about its government contracts. When the political winds shift – and they always do – Palantir’s “anti-woke” positioning might not look so clever anymore.
