Palantir reported third-quarter revenue of $2.31 billion, up 96% from a year earlier and 20% from the previous quarter. The figure beat analysts' expectations of $2.18 billion. Adjusted earnings per share were 44 cents, compared with analysts' expectations of 41 cents. The company also raised its full-year revenue guidance.
U.S. commercial revenue surpassed U.S. government revenue for the first time. Palantir reported $984 million in commercial contracts, up 148% from the year-ago quarter, versus $953 million in U.S. government revenue. The report says enterprises are signing up for Palantir's AI software, which can run frontier models and custom-train open-weight models without sharing data with outside AI labs. Palantir also offers "forward-deployed" software engineering, in which its engineers work directly with customers to customize the software.
Despite the results, retail investors were lukewarm, and the stock traded slightly down on Tuesday. The report says enterprise sales, the company's main growth area, showed signs of slowing.
CEO Alex Karp told analysts that enterprises are moving to deployment faster, but on shorter contract durations, with an ability to expand those contracts dramatically. The report