Palantir reported record third-quarter revenue of $2.31 billion, up 96% year over year and 20% from the previous quarter. The figure exceeded analysts’ expectations of $2.18 billion and marked the company’s first quarter above $2 billion. Adjusted earnings per share came in at $0.44, compared with an expected $0.41, and Palantir raised its full-year revenue guidance.
U.S. commercial revenue also reached a milestone, surpassing U.S. government revenue for the first time. The company reported $984 million in commercial contracts, up 148% from a year earlier, compared with $953 million in U.S. government revenue.
Despite the strong results, Palantir’s shares traded slightly lower on Tuesday. One concern is that enterprises are adopting the company’s AI software quickly but often starting with shorter-term trials. CEO Alex Karp said customers are moving faster from initial discussions to deployment, while contracts are shorter in duration but can expand substantially.
The reported contract figures offer another caution. Palantir closed $1.46 billion in total contract value from U.S. enterprises during the quarter, down from a record $2.13 billion in the previous quarter. That points to a potential slowdown in enterprise sales, though the figures cover only the latest quarter.
Palantir raised its outlook for U.S. commercial revenue to more than $3.559 billion, implying growth of at least 143%. Its next earnings report will provide further evidence of whether the company can sustain its momentum among U.S. enterprise customers.
Sources: TechCrunch.