WORLDTECHPalantir reports US commercial revenue overtaking government sales
Palantir reported third-quarter revenue of $2.31bn, nearly double a year earlier, and its US commercial business brought in more than its US government work for the first time. The company also raised its full-year revenue forecast for the third time this year.
Revenue and earnings beat expectations
For the quarter that ended on September 30, Palantir posted total revenue of $2.31bn, up 96% and the first quarter above $2bn. Analysts had expected $2.18bn, according to LSEG estimates reported by CNBC.
Adjusted earnings came to 44 cents a share, compared with 21 cents a year earlier and the 41 cents analysts had anticipated. Net income more than doubled to $1.13bn from $476m, the company said in its earnings release on Monday, and shares rose more than 1% in late trading.
Commercial business moves ahead of government
Sales to US commercial customers climbed 148% year on year to $984m, and rose 29% from the second quarter. Government sales grew 96% to $953m, leaving the commercial side ahead for the quarter.
Palantir also closed 212 deals worth at least $1m during the quarter, 64 of them worth $10m or more. Total contract value rose 6% from a year earlier to $2.918bn, while commercial remaining deal value climbed 79% to $6.517bn.
Forecasts lifted for the year and fourth quarter
Full-year revenue guidance now stands at $8.530bn to $8.534bn, up from the $8.150bn to $8.158bn forecast in August. That range implies growth of 91%, while analysts had averaged $8.2bn according to Bloomberg data. US commercial revenue is now expected to exceed $3.559bn this year, growth of at least 143%.
For the fourth quarter Palantir expects revenue of $2.649bn to $2.653bn, against analyst forecasts of $2.46bn, and adjusted operating income of $1.640bn to $1.644bn. Adjusted free cash flow for 2026 is now forecast at $4.8bn to $5bn.
Chief executive frames the shift
Co-founder and chief executive Alex Karp used the earnings release to describe what he called the Sovereign AI movement, which he said is producing the sharpest split between haves and have-nots he has seen in 30 years in business. In his account, governments and companies are being sorted into one group or the other, voluntarily or not, a shift he said is purpose-built for Palantir. Karp also told CNBC the business is succeeding without salespeople.
Open questions
- Will commercial revenue stay ahead of government revenue in coming quarters?
- How much of the raised forecast rests on the commercial business?