Palantir U.S. commercial revenue outpaced the government for the first time, beating Wall Street’s third-quarter expectations after the bell on Monday, as companies increasingly adopted the company’s artificial intelligence tools.
The stock price fell about 4% in extended trading.
Here’s how the company performed compared to LSEG’s estimates:
Earnings per share: 44 cents adjusted, 41 cents expected; Revenue: $2.31 billion, $2.18 billion expected.
Palantir said its sales nearly doubled from a year ago and exceeded $2 billion for the first time in its history. Net income more than doubled from about $476 million, or 18 cents per share, to $1.13 billion, or 44 cents per share.
“I don’t think anyone in the history of software AI has had such consistent results,” CEO Alex Karp said in an interview with CNBC’s Seema Modi, adding that the business is successful without salespeople.
Palantir has long been known for its strength in the government sector, but its commercial sector caught up in the third quarter.
U.S. commercial revenues rose 148% to $984 million, outpacing U.S. government revenues of $953 million, which rose 96%. The company’s U.S. commercial revenue has increased more than fivefold in the past two years.
Palantir raised its guidance, saying it expects full-year U.S. commercial revenue to be “in excess” of $3.56 billion. Last quarter, the company raised its estimate to $3.42 billion. The company expects sales of approximately $2.65 billion in the fourth quarter and approximately $8.53 billion for the full year of 2026.
Karp has publicly supported the use of open weight models and criticized major AI labs, telling CNBC earlier this year that companies were forcing them to sell data sovereignty. Karp on Monday reiterated recent calls to nationalize AI labs, saying it was “the only realistic way” to manage liability.
Karp joined CEOs of major technology companies in the White House in September amid growing calls for regulation after AI researchers say the technology is responsible for more than 10% of human deaths.
“My message to everyone is to be careful about thinking you can delay the future of AI,” he told CNBC. “The future is here. Its political implications are here.”
Palantir stock price chart.
