2 Companies Enjoying Surging Sales Momentum

The 2025 Q3 earnings season remains positive as several companies reported accelerating growth: Wayfair beat expectations with adjusted EPS of $0.70 (+220% YoY), revenue of $3.1 billion (+8.1%), a 6.7% adjusted EBITDA margin (its highest outside the pandemic), orders delivered up more than 5% YoY and new orders in the mid-single digits for two consecutive periods; Palantir posted record quarterly revenue of $1.2 billion (+63% YoY), with US commercial revenue +121% and US government +52%, closed more than 200 deals of at least $1 million (including 91 at $5M+ and 53 at $10M+), produced a record $2.8 billion of total contract value (+340% YoY) and grew customer count 45% YoY—results that underpin improving scale, margin expansion potential and stronger recurring revenue trajectories in e‑commerce and enterprise software.

Analysis

The 2025 Q3 earnings cycle is described as broadly positive, led by outsized beats from Wayfair and Palantir that show accelerating top-line momentum. Wayfair reported adjusted EPS of $0.70, up 220% year‑over‑year, revenue of $3.1 billion (+8.1%), and a 6.7% adjusted EBITDA margin — its highest outside the pandemic — with orders delivered up >5% YoY and new orders in the mid‑single digits for two consecutive periods.

Palantir posted record quarterly sales of $1.2 billion (+63% YoY) with US commercial revenue +121% and US government +52%; it closed more than 200 deals ≥$1M (including 91 ≥$5M and 53 ≥$10M), generated $2.8 billion of TCV (+340% YoY), and grew customer count 45% YoY, underpinning expanding recurring-revenue potential and a Zacks Rank #2 (Buy) sentiment.

The results imply improving scale and margin expansion potential for both firms, but key execution risks remain: for Wayfair the sustainability of order momentum and margin gains, and for Palantir the conversion of outsized TCV into recurring recognized revenue and execution across larger deals. Near‑term catalysts to watch are next-quarter guidance, orders/booking trends and margin trajectory to validate the positive headline metrics.

Key Decisions for Investors

• Consider increasing exposure to Palantir on its record revenue growth, large TCV wins and rapid customer expansion, while limiting position size until conversion of TCV to recognized revenue is confirmed
• For Wayfair, consider a selective add or a hold if subsequent reports confirm continued orders-delivered growth and sustained adjusted EBITDA margin expansion, otherwise wait for clearer guidance
• Monitor next-quarter guidance, orders delivered and bookings-to-revenue conversion for both names as the primary indicators that validate durable momentum
• Manage risk with position sizing or hedges given execution and sustainability questions despite the strong Q3 headlines