Palantir's U.S. Commercial Revenue Hits $984 Million, Overtaking Government for First Time
Updated
Updated · CNBC · Nov 2
Palantir's U.S. Commercial Revenue Hits $984 Million, Overtaking Government for First Time
3 articles · Updated · CNBC · Nov 2
Summary
U.S. commercial revenue rose 148% to $984 million in Q3, edging past U.S. government revenue of $953 million as Palantir's AI tools gained wider business adoption.
Palantir also beat Wall Street estimates with adjusted EPS of 44 cents versus 41 cents expected and revenue of $2.31 billion versus $2.18 billion, while net income more than doubled to $1.13 billion.
Total revenue nearly doubled from a year earlier and topped $2 billion for the first time, with the company saying U.S. commercial revenue has more than quintupled over the past two years.
Palantir raised its outlook again, forecasting U.S. commercial revenue above $3.56 billion for the year, fourth-quarter revenue of about $2.65 billion and full-year 2026 revenue of about $8.53 billion.
The milestone marks a shift for a company long defined by government work, even as CEO Alex Karp pairs the commercial AI push with calls for tighter oversight, including nationalizing AI labs.
With commercial revenue finally eclipsing government contracts, can Palantir's unconventional sales model sustain the hyper-growth needed to justify its soaring valuation?
Is Palantir’s true competitive advantage its advanced AI software, or the on-site engineers who secretly act as a highly specialized enterprise sales force?
As enterprises demand strict AI sovereignty, will Palantir's secure data layer become the mandatory standard for corporate AI adoption?