Palantir beat Wall Street’s third-quarter revenue and adjusted earnings estimates as demand for AI tools boosted its U.S. commercial business. Commercial revenue rose 148% year over year to $984 million, surpassing U.S. government revenue for the first time. The company also raised its full-year outlook, though its shares fell about 3% in after-hours trading.
Revenue tops $2 billion as profit more than doubles
Adjusted earnings were 44 cents a share, above the 41-cent analyst consensus compiled by LSEG. Revenue reached $2.31 billion, ahead of expectations of $2.18 billion. Palantir said revenue nearly doubled from a year earlier, marking its first quarter above $2 billion.
Net income climbed to $1.13 billion from about $476 million in the year-earlier period. Earnings per share rose to 44 cents from 18 cents. The results reflect growing demand among commercial customers for Palantir’s data analytics and AI products, alongside a shift in the company’s revenue mix.
U.S. commercial revenue overtakes government sales
Palantir has long been known for its government contracts. In the third quarter, however, U.S. commercial revenue reached $984 million, up 148% year over year, while U.S. government revenue rose 96% to $953 million. Commercial sales grew faster and, for the first time, were larger than government revenue for the quarter.
The company said U.S. commercial revenue has grown more than fivefold over the past two years. Rising demand for AI tools has supported the expansion. Chief Executive Alex Karp said in an interview that the company had delivered sustained growth and that its business was not dependent on salespeople to drive it.
Palantir raises 2026 revenue outlook
Palantir lifted its forecast for 2026 U.S. commercial revenue to “more than” $3.56 billion, up from the $3.42 billion projection it gave last quarter. It expects fourth-quarter revenue of about $2.65 billion and full-year revenue of roughly $8.53 billion.
The shift in the revenue mix is a notable feature of the quarter. Investors will be watching whether subsequent results support the higher outlook and demonstrate that demand from enterprise customers is holding up. Despite the stronger results and raised guidance, Palantir shares fell 2.99% to $173 in after-hours trading following the release.
Karp weighs in on open models and AI governance
Karp has previously backed open-weight models and criticized the practices of some AI labs. Earlier this year, he said those practices could force companies to give up data sovereignty. On Monday, he again called for AI labs to be nationalized, describing it as the “only realistic way” to manage the responsibilities involved.
In September, Karp joined several technology company CEOs at a White House event as debate over AI regulation intensified and some researchers warned about the technology’s risks. In the interview, he said businesses should not assume AI development can be delayed and argued that its political effects were already visible. His comments come as Palantir expands its commercial business amid growing debate over AI governance.