Palantir Tops $2B in Quarterly Revenue as Enterprise AI Demand Pushes Commercial Sales Past Government

Palantir reported third-quarter revenue of $2.31 billion on Monday, up 96% year on year and ahead of analyst expectations of $2.18 billion, marking the first time the company has surpassed $2 billion in a single quarter. Adjusted earnings per share came in at 44 cents against forecasts of 41 cents, and the company lifted its full-year revenue guidance.

For the first time, U.S. commercial revenue exceeded U.S. government revenue, reaching $984 million, up 148%, compared with $953 million from government contracts. Enterprises are adopting Palantir’s AI software, which can run frontier models and custom-train open-weight models securely without sharing data with outside AI labs, supported by its forward-deployed engineers.

However, shares slipped on Tuesday as signs of slowing enterprise sales emerged. CEO Alex Karp told analysts that customers are deploying faster but often signing shorter contracts, which can later expand significantly. Total contract value from U.S. enterprises fell to $1.46 billion from a record $2.13 billion the previous quarter.

Karp said he was unconcerned, arguing that customers who adopt Palantir do not switch away. The company now expects U.S. commercial revenue to exceed $3.559 billion for the year, representing growth of at least 143%.