02:50 PM EST, 11/04/2025 (MT Newswires) -- Palantir Technologies ( PLTR ) reported a strong Q3, beating consensus estimates, though growth seemingly remained heavily US-focused and may not be sustainable as early artificial intelligence platform deployments mature, RBC Capital Markets said in a note emailed Tuesday.

US commercial revenue jumped 121% to $397 million, while international sales grew 10% to $152 million, reflecting limited international performance and over-reliance on US growth, RBC said.

Total contract value rose 151% to $2.8 billion, driven by large multiyear US AI Platform deals that RBC analysts warned may temporarily inflate bookings, according to the note.

RBC noted that margins were also strong, with adjusted operating and free cash flow margins of 51% and 46% in Q3, but it also expects some margin pressure as Palantir ( PLTR ) increases research & development and sales spending to support US expansion.

RBC maintained its underperform rating on the stock and raised its price target to $50 from $45.

Shares of Palantir ( PLTR ) fell 9.3% in recent Tuesday trading.

Price: 187.95, Change: -19.23, Percent Change: -9.28