Palantir Q3 revenue jumps 96% to $2.31B as commercial sales top government
What's the deal? Palantir's third-quarter revenue soared 96% year over year to $2.31 billion, beating the $2.18 billion analysts expected. For the first time in its history, US commercial revenue surpassed US government revenue.
By the numbers: US commercial sales rose 148% to $984 million, edging past the $953 million from US government customers. Total US revenue climbed 119% to $1.94 billion. Profit hit $1.13 billion, or 44 cents a share, up from $475.6 million a year earlier and ahead of the 41-cent estimate.
What's the endgame? Palantir builds data management and analysis software for businesses and governments. The company said firms are increasingly turning away from AI labs to more fully control their own use of the technology.
What's next? Palantir lifted its full-year revenue outlook to roughly $8.53 billion, up from earlier guidance of about $8.16 billion and above the $8.21 billion analysts forecast. It expects fourth-quarter revenue of about $2.65 billion.
Chief executive officer Alex Karp cast the quarter as part of a broader shift. "The age of sovereign AI was made for Palantir," he said, adding in a letter to shareholders that the growth "represents a degree of intensity and sustained momentum that we believe is unmatched in recent economic history."
What could go wrong? Despite the beat, shares fell more than 6% in after-hours trading. The stock had set an all-time intraday high of $212.94 on October 12 before retreating with a broader tech sell-off tied to concerns about AI profitability.
The signal: The crossover reframes Palantir from a defence contractor into an enterprise AI vendor. In the prior quarter, commercial revenue grew 149% but still trailed government sales; Q3's milestone, paired with the raised forecast, suggests its AI platform is gaining real traction with US businesses — not just public agencies.
Read more: CNBC
Image credit: Generated with Gemini
