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Palantir US commercial revenue tops government revenue for the first time
Palantir reported third quarter revenue of $2.313 billion, up 96% year over year, beating analyst expectations of $2.18 billion, SiliconANGLE reported. US commercial revenue reached $984 million, up 148%, and overtook US government revenue of $953 million for the first time in the company's history. Palantir raised its full year revenue guidance for the third time this year, to between $8.530 billion and $8.534 billion.
Key points
- Q3 revenue rose 96% to $2.313 billion, beating the $2.18 billion analysts expected.
- US commercial revenue of $984 million passed US government revenue of $953 million for the first time.
- Full year revenue guidance was raised to between $8.530 billion and $8.534 billion.
What happened: Palantir Technologies beat third quarter forecasts and raised its full year revenue outlook for the third time this year, SiliconANGLE reported. For the quarter ended September 30, the company reported adjusted earnings of 44 cents per share and revenue of $2.313 billion, up 96% from a year earlier. Analysts had expected 41 cents and $2.18 billion. It was Palantir's first quarter with revenue above $2 billion.
The details: US commercial revenue rose 148% to $984 million, overtaking US government revenue of $953 million for the first time in Palantir's history. Palantir closed 212 deals worth at least $1 million, including 64 worth $10 million or more. US commercial remaining deal value rose 79% to $6.517 billion. Net income was $1.128 billion, a 49% net margin, and the company ended September with $10.4 billion in cash, equivalents and US Treasuries.
Background: Chief executive Alex Karp said in the earnings release that a "Sovereign AI movement" is creating the most dramatic split between haves and have nots he has seen in 30 years, and that the shift is "purpose-built for Palantir." The company has not disclosed which customers drove the commercial growth.
What to watch: Palantir guided fourth quarter revenue to between $2.649 billion and $2.653 billion, above the $2.46 billion analysts had forecast. It now expects full year revenue of $8.530 billion to $8.534 billion, up from the $8.150 billion to $8.158 billion range it gave in August, and US commercial revenue above $3.559 billion.
Our take
Commercial demand overtaking government spending at Palantir is a strong signal that large enterprises are now paying at scale for AI data and decision platforms.