Palantir's Q3 commercial sales overtake government earnings as shares dip

UPDATE - follow-up to Palantir reports booming U.S. commercial revenue growth, topping government for first time: Palantir posted third‑quarter results that beat Wall Street forecasts, with U.S. commercial revenue exceeding government revenue for the first time. U.S. commercial revenue jumped 148% year‑over‑year to $984 million, moving ahead of U.S. government revenue of $953 million, which rose 96%. Overall revenue nearly doubled from a year ago, topping $2 billion for the first time. Net income more than doubled to $1.13 billion, or 44 cents per share, up from $476 million (18 cents per share) a year earlier. Shares fell about 4% in after‑hours trading. CEO Alex Karp told CNBC that the results are unprecedented in software AI history and that the company is succeeding without a traditional sales force. He reiterated his call to nationalise AI labs, calling it the only realistic way to manage liability, and warned against trying to delay AI’s future. Karp also defended open‑weight models and criticised major AI labs for forcing companies to surrender data sovereignty. Palantir lifted its outlook, now expecting U.S. commercial revenue "in excess of" $3.56 billion for the full year, up from a prior $3.42 billion forecast. The firm projects about $2.65 billion in Q4 revenue and roughly $8.53 billion for full‑year 2026.

Context

Palantir has long been strong in government contracts, but its commercial segment has surged, with U.S. commercial revenue more than quintupled over the past two years, signaling a shift toward broader enterprise adoption of its AI tools.