Key Takeaways

• Palantir exceeded Wall Street's third-quarter earnings expectations.
• U.S. commercial revenue more than doubled, surpassing U.S. government revenue for the first time.
• The surge is attributed to increased demand for Palantir's artificial intelligence solutions.

Palantir Technologies Inc. (PLTR) has reported robust third-quarter results, surpassing analyst estimates and marking a significant milestone as its U.S. commercial revenue has, for the first time, exceeded its U.S. government revenue. This pivotal shift underscores the growing adoption of the company's artificial intelligence and data analytics platforms by businesses worldwide.

The Denver-based software company announced adjusted earnings per share of 44 cents, beating the consensus estimate of 41 cents. Revenue for the quarter reached $2.31 billion, exceeding the expected $2.18 billion, and marking a near doubling of revenue compared to the previous year. This achievement also signifies Palantir crossing the $2 billion revenue mark for the first time in its history.

Net income saw a substantial increase, more than doubling to $1.13 billion, or 44 cents per share, up from approximately $476 million, or 18 cents per share, in the same period last year. CEO Alex Karp expressed strong confidence in the company's performance, stating, "I don't believe anyone's had consistent results like this in the history of software AI, ever." He also highlighted the company's success in growing its business without a traditional sales force.

Commercial Segment Surges Ahead

While Palantir has historically been recognized for its work with government agencies, its commercial sector is now proving to be a major growth engine. U.S. commercial revenue surged by an impressive 148% year-over-year to $984 million. In comparison, U.S. government revenue grew by 96% to $953 million. This marks a significant shift, with Palantir's U.S. commercial revenue having more than quintupled over the past two years.

The company has raised its full-year guidance, now anticipating U.S. commercial revenue to be "in excess of" $3.56 billion, an upward revision from the previous forecast of $3.42 billion. For the fourth quarter, Palantir projects revenue to be around $2.65 billion, with an optimistic outlook for the full year 2026 targeting approximately $8.53 billion in total revenue.

Karp on AI and Regulation

CEO Alex Karp has been an outspoken advocate for open-weight AI models and has voiced concerns about the proprietary nature of some leading AI labs, suggesting they compel businesses to relinquish data sovereignty. Karp also reiterated his calls for the nationalization of AI labs as a means to manage liability effectively, deeming it the "only realistic way."

His comments come amid heightened global discussions on AI regulation. Karp attended a White House meeting in September with other tech leaders to address mounting concerns over artificial intelligence, especially following claims by some researchers about the existential risks associated with the technology. Karp's message to industry leaders and policymakers is clear: "Beware of thinking you can delay the future in AI. The future is here. The political ramifications of it are here."