Palantir reports booming U.S. commercial revenue growth, topping government for first time

Palantir beat Wall Street's third-quarter estimates after the bell on Monday, with U.S. commercial revenue topping government for the first time as businesses adopt more of the company's artificial intelligence tools.

Revenue nearly doubled from a year ago and blew past $2 billion for the first time ever, Palantir said. Net income more than doubled to $1.13 billion, or 44 cents per share, from about $476 million, or 18 cents per share.

Palantir has long been known for its strength in the government sector, but its commercial segment caught up in Q3.

U.S. commercial revenue jumped 148% to $984 million, surpassing U.S. government revenue of $953 million, which was up 96%. The company's U.S. commercial revenue has more than quintupled over the last two years.

Palantir lifted its guidance, saying it now expects U.S. commercial revenue "in excess of" $3.56 billion for the full year. Last quarter, the company boosted its forecast to $3.42 billion. The company projects about $2.65 billion in revenue for the fourth quarter and about $8.53 billion for full-year 2026.

CEO Alex Karp has been a vocal critic of leading AI labs, which he told CNBC earlier this year are forcing businesses to sell their data sovereignty.

In September, Karp joined major tech CEOs at the White House as calls for regulation mounted following claims from AI researchers that the technology has a more than 10% of killing humanity .

"The main issue that you have and I have is we have to take responsibility for the dangers we're aware of," he told CNBC at the time outside the White House. "All of us do. And by the way, American people don't want separate rules for tech people and for themselves."