Palantir surpassed Wall Street’s third-quarter estimates after the bell on Monday, driven by U.S. commercial revenue exceeding government revenue for the first time due to rising adoption of its artificial intelligence tools. Following the report, shares dropped approximately 3% in extended trading.
Financial Performance and Estimates
Palantir posted adjusted earnings per share of 44 cents, topping the 41 cents expected by LSEG consensus estimates. Total revenue reached $2.31 billion, surpassing the projected $2.18 billion. Revenue nearly doubled compared to the previous year, crossing the $2 billion threshold for the first time. Net income surged past $1.13 billion, or 44 cents per share, marking a significant increase from roughly $476 million, or 18 cents per share, a year earlier.
Chief Executive Officer Alex Karp told US Top News and Analysis (cnbc.com) in an interview that the company achieved these results without relying on a sales team, stating, “I don’t believe anyone’s had consistent results like this in the history of software AI, ever.”
Commercial Growth Outpaces Government Sector
Historically recognized for its dominant position in the government sector, Palantir saw its commercial segment achieve parity during the third quarter. U.S. commercial revenue surged 148% to $984 million, outpacing U.S. government revenue, which rose 96% to $953 million. Over the past two years, the company’s U.S. commercial revenue has expanded more than fivefold.
