Palantir reports booming U.S. commercial revenue growth, topping government for first time

Key points

• Palantir's U.S. commercial revenue reached $984 million, surpassing U.S. government revenue of $953 million for the first time.
• Total revenue passed $2 billion for the first time, and net income more than doubled to $1.13 billion.
• Palantir raised its full-year U.S. commercial revenue guidance to more than $3.56 billion.

Palantir reported third-quarter results that beat Wall Street estimates, with U.S. commercial revenue exceeding government revenue for the first time as businesses adopt more of its artificial intelligence tools. The company said revenue nearly doubled from a year earlier and passed $2 billion for the first time.

Net income more than doubled to $1.13 billion, or 44 cents per share, from about $476 million, or 18 cents per share, a year earlier.

Commercial segment overtakes government

U.S. commercial revenue rose 148% to $984 million, ahead of U.S. government revenue of $953 million, which was up 96%. Palantir said its U.S. commercial revenue has more than quintupled over the last two years.

The company lifted its guidance and now expects U.S. commercial revenue "in excess of" $3.56 billion for the full year, up from a forecast of $3.42 billion last quarter. It projects about $2.65 billion in revenue for the fourth quarter and about $8.53 billion for full-year 2026.

I don't believe anyone's had consistent results like this in the history of software AI, ever

— CEO Alex Karp

Karp on AI and regulation

CEO Alex Karp told CNBC the business is succeeding without salespeople, saying he does not believe anyone has had such consistent results in the history of software AI. He has also repeated calls to nationalize AI labs, describing it as the "only realistic way" to manage liability.

Karp said people should not assume the future of AI can be delayed, adding that its political ramifications are already present.