● Covered by 2 sources · 2 reportsMedium impact1 neutral1 positive
Palantir's Q3 Revenue Exceeds Estimates, U.S. Commercial Revenue Tops Government for First Time
Key points
- Q3 revenue was $2.31 billion, exceeding $2.18 billion estimate.
- U.S. commercial revenue grew 148% to $984 million.
- U.S. commercial revenue surpassed U.S. government revenue for the first time.
- Palantir raised full-year U.S. commercial revenue guidance to over $3.56 billion.
- Q3 revenue grew 96% year over year.
- Q3 revenue grew 20% from the previous quarter.
- Adjusted earnings per share were $0.44, exceeding $0.41 estimate.
- U.S. government revenue was $953 million.
Strong Q3 Performance
Palantir announced third-quarter results that exceeded analyst expectations. The company reported adjusted earnings per share of 44 cents against an expected 41 cents, and revenue reached $2.31 billion, surpassing the $2.18 billion estimate. This marks the first time Palantir's revenue has exceeded $2 billion, nearly doubling from the previous year. Net income more than doubled to $1.13 billion, or 44 cents per share.
U.S. Commercial Growth Outpaces Government Sector
A significant development in Q3 was the U.S. commercial segment's revenue surpassing that of the U.S. government sector. U.S. commercial revenue jumped 148% year-over-year to $984 million, while U.S. government revenue increased 96% to $953 million. This shift indicates a growing adoption of Palantir's AI tools within the business sector, with U.S. commercial revenue quintupling over the last two years.
Increased Revenue Guidance
Following its strong performance, Palantir has raised its financial outlook. The company now projects U.S. commercial revenue to exceed $3.56 billion for the full year, an increase from its previous forecast of $3.42 billion. For the fourth quarter, Palantir anticipates approximately $2.65 billion in revenue, and projects around $8.53 billion for the full year 2026.
CEO's Stance on AI
CEO Alex Karp commented on the company's consistent results in AI software. He has also publicly supported open-weight AI models and criticized leading AI labs for potentially compromising businesses' data sovereignty. Karp reiterated calls for nationalizing AI labs as a method to manage liability, and emphasized the immediate political ramifications of AI's advancement.
Updates
- Q3 revenue grew 96% year over year.
- Q3 revenue grew 20% from the previous quarter.
- Adjusted earnings per share were $0.44, exceeding $0.41 estimate.
- U.S. government revenue was $953 million.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
Palantir reported strong Q3 earnings, with revenue reaching $2.31 billion and U.S. commercial revenue surpassing U.S. government revenue for the first time. Despite exceeding financial expectations, the company noted a trend of shorter-duration enterprise contracts, indicating a shift in how businesses adopt AI software.
Palantir reported third-quarter earnings that surpassed Wall Street expectations, with total revenue reaching $2.31 billion. For the first time, U.S. commercial revenue, which grew 148% to $984 million, exceeded U.S. government revenue of $953 million, driven by increased adoption of its AI tools by businesses. The company also raised its full-year U.S. commercial revenue guidance to over $3.56 billion.