Palantir Revenue Tops Estimates as U.S. Commercial Sales Lead
Palantir reported third-quarter revenue of $2.31 billion, beating analyst estimates as U.S. commercial sales grew 148% and for the first time exceeded revenue…
Palantir reported $2.31 billion in third-quarter revenue after the market closed on Monday, beating Wall Street estimates as businesses adopted more of its artificial intelligence tools. U.S. commercial revenue rose above government revenue for the first time, marking a shift in the company’s business mix.
The results topped estimates for both revenue and adjusted earnings per share. Palantir shares dipped about 3% in extended trading.
The company posted adjusted earnings per share of 44 cents, compared with the 41 cents analysts expected, and revenue of $2.31 billion against an estimate of $2.18 billion, according to LSEG estimates.
Tech news: How did Palantir’s commercial business grow?
U.S. commercial revenue jumped 148% to $984 million, while U.S. government revenue rose 96% to $953 million. Palantir said its U.S. commercial revenue has more than quintupled over the last two years.
The change matters because Palantir has long been known for its strength in government contracts. In the third quarter, its U.S. commercial business edged past that segment as companies increased their use of the firm’s AI products.
Revenue nearly doubled from a year earlier and exceeded $2 billion for the first time, Palantir said. Net income more than doubled to $1.13 billion, or 44 cents per share, from about $476 million, or 18 cents per share.
That growth offers a concrete measure of the demand Palantir says it is seeing from businesses. For customers, the figures show commercial adoption is now contributing more U.S. revenue than government work, though the results do not specify how many companies adopted its tools or what they paid.
What is Palantir forecasting?
Palantir now expects U.S. commercial revenue to exceed $3.56 billion for the full year. The company had raised its forecast to $3.42 billion last quarter.
It projects about $2.65 billion in fourth-quarter revenue and about $8.53 billion for full-year 2026. The raised commercial outlook points to continued growth in that business, while the quarterly forecast sets the company’s next reported revenue target.
Chief Executive Alex Karp said the company was producing unusually consistent results in software and AI. “I don't believe anyone's had consistent results like this in the history of software AI, ever,” Karp told CNBC’s Seema Mody in an interview, adding that the business was succeeding without salespeople.
Karp also reiterated his call for nationalizing AI labs, describing it as the “only realistic way” to manage liability. He has supported open-weight models and criticized leading AI labs, saying earlier this year that they were forcing businesses to sell their data sovereignty.
“My message to everybody is: Beware of thinking you can delay the future in AI,” Karp said. “The future is here. The political ramifications of it are here.”
Palantir’s U.S. commercial revenue reached $984 million in the third quarter, surpassing the $953 million recorded by its U.S. government business.
