Palantir Beats Expectations as U.S. Commercial Revenue Surpasses Government Sales

UPDATE - follow-up to Palantir reports booming U.S. commercial revenue growth, topping government for first time: Palantir beat Wall Street estimates for the third quarter after the bell on Monday, driven by a surge in business adoption of its artificial intelligence tools.

Financial Results

Revenue nearly doubled from a year ago and crossed $2 billion for the first time. Net income more than doubled to $1.13 billion, or 44 cents per share, up from $476 million or 18 cents per share in the same period last year. U.S. commercial revenue jumped 148% to $984 million, passing U.S. government revenue of $953 million for the first time.

Leadership Statements

CEO Alex Karp stated in an interview with CNBC that no one has had such consistent results in the history of software AI. Karp noted that the business is succeeding without salespeople. He also reiterated calls to nationalize AI labs and warned against trying to delay the future in artificial intelligence.

Outlook

Palantir raised its full-year guidance, expecting U.S. commercial revenue to exceed $3.56 billion. The company projects about $2.65 billion in revenue for the fourth quarter and roughly $8.53 billion for the full year of 2026. Despite the strong results, company shares dipped about 3% in extended trading.

Context

Palantir has traditionally relied heavily on government contracts for the majority of its business. The rapid growth in its commercial sector highlights how enterprise demand for artificial intelligence tools is reshaping the software industry.