Palantir’s U.S. commercial revenue exceeded its U.S. government revenue for the first time in the third quarter, as businesses increased their use of the company’s artificial intelligence tools. Commercial revenue rose 148% year over year to $984 million, while government revenue grew 96% to $953 million.
The company reported revenue of $2.31 billion, beating analysts’ estimate of $2.18 billion, and adjusted earnings of 44 cents per share, above the 41 cents expected, according to LSEG estimates. Palantir said revenue nearly doubled from a year earlier and surpassed $2 billion for the first time. Net income more than doubled to $1.13 billion, compared with about $476 million a year ago.
Chief Executive Alex Karp told CNBC that the company was achieving strong results without salespeople. Palantir has historically been known for its government business, but its U.S. commercial revenue has more than quintupled over the past two years.
Palantir raised its full-year U.S. commercial revenue forecast to more than $3.56 billion, up from the $3.42 billion outlook it gave last quarter. It expects fourth-quarter revenue of about $2.65 billion and full-year 2026 revenue of around $8.53 billion.
Shares fell about 2% in extended trading after the results. Karp also reiterated his view that AI labs should be nationalized, describing it as the only realistic way to manage liability, and warned that the effects of AI are already here.
Sources: CNBC Markets.