Palantir Revenue Jumps 96% as US Commercial Sales Overtake Government

Palantir’s third-quarter revenue nearly doubled to $2.31 billion, but the more revealing number is where the growth came from. Its US commercial business generated $984 million, moving ahead of the $953 million it earned from US government customers. For a company long identified with defence and intelligence contracts, that shift suggests its artificial intelligence software is gaining a much broader corporate market.

The figures come from Palantir’s results filed with the US Securities and Exchange Commission on 2 November. Total revenue rose 96% from a year earlier. US commercial revenue climbed 148%, while US government revenue grew 96%. These are substantial increases in both divisions, not evidence that the government business is slowing.

Palantir sells platforms for bringing together complex data, building applications and deploying AI in operational workflows. Its Artificial Intelligence Platform, or AIP, has helped make the company a prominent beneficiary of enterprise interest in generative AI. Yet corporate enthusiasm alone does not establish that software is delivering returns. The commercial revenue crossover gives investors a clearer sign that customers are committing money beyond demonstrations and pilot projects.

The company said it closed 212 deals worth at least $1 million during the quarter. Deal counts can indicate sales momentum, but they should not be treated as revenue already recognised or as a guarantee that every contract will expand. Investors will still need to watch renewals, deployment depth and whether customers continue spending once early AI budgets face more scrutiny. That is the wider question behind the current test of AI spending across technology companies.

Palantir also reported $1.09 billion in GAAP operating income, equivalent to a 47% operating margin, and $1.21 billion in cash generated from operations. Those figures make the quarter more than a top-line growth story. They show how quickly high-margin software revenue can translate into cash when sales accelerate.

For the full year, Palantir now expects revenue of between $8.530 billion and $8.534 billion. It forecast fourth-quarter revenue of $2.649 billion to $2.653 billion. Guidance is a company projection rather than a result, and such a rapid growth rate sets a demanding benchmark for future quarters.

The immediate story is straightforward. Government contracts remain important and are growing rapidly, but US companies have become the larger of Palantir’s two domestic customer groups. Whether that balance holds will help determine if the AI boom is producing a durable enterprise software business or a particularly strong spending cycle.