Q3 sales of $2.31 billion beat market estimates; commercial revenue overtakes government for first time

Annual outlook raised as US commercial AI adoption accelerates

[Reuters]
[Reuters]

Palantir's quarterly sales surpassed $2 billion for the first time in the company's history, driven by surging AI adoption among US businesses that pushed commercial revenue ahead of government revenue for the first time.

The US data analytics company reported Monday that third-quarter sales rose 96 percent year-on-year to $2.31 billion, topping the $2.18 billion consensus estimate compiled by the London Stock Exchange Group (LSEG).

Earnings per share came in at $0.44, beating the market estimate of $0.41.

The US commercial segment led earnings growth. Third-quarter US commercial sales reached $984 million, up 148 percent from a year earlier and 29 percent from the previous quarter — surpassing government-segment sales of $953 million for the first time.

Total US sales climbed 119 percent year-on-year to $1.94 billion.

Palantir forecast fourth-quarter sales of $2.65 billion and raised the upper end of its full-year sales outlook to $8.53 billion from $8.16 billion.

"The age of sovereign AI was made for Palantir," CEO Alex Karp said. "Our products connect and harmonize workflows with optimal models, triggering a self-improving virtuous cycle that deepens collaboration between us and our partners."

Despite the strong results, Palantir's share price fell in after-hours trading. The stock closed Monday's regular session down 3.08 percent at $178.44, and slid a further 6.14 percent after the earnings release.

Palantir shares had set an all-time intraday high of $212.94 on Oct. 12, but have since retreated alongside a broader sell-off in technology stocks amid concerns about AI profitability.


moon@heraldcorp.com