Palantir's U.S. commercial revenue hits $984 million, surpassing government earnings.

Palantir Technologies said its U.S. commercial revenue beat the government segment for the first time in the third quarter, sending the company’s earnings above Wall Street forecasts on Monday after the market closed. The software maker reported revenue of just over $2 billion, nearly double the figure a year earlier, and net income of $1.13 billion, or 44 cents per share. Shares slipped about 3 percent in after‑hours trading.

The shift reflects a broader wave of AI adoption by private firms that has accelerated over the past two years. Palantir’s commercial sales grew 148 percent to $984 million, while its U.S. government revenue rose 96 percent to $953 million. The company’s commercial earnings have more than quintupled since 2022, a change the firm attributes to businesses deploying its artificial‑intelligence tools without the need for a traditional sales force.

CEO Alex Karp told CNBC that the results are unprecedented in software AI history. He highlighted that the business is succeeding without a conventional sales team and reiterated his support for open‑weight AI models. Palantir lifted its full‑year guidance, now expecting U.S. commercial revenue of “in excess of” $3.56 billion, up from a prior forecast of $3.42 billion. The firm also projects $2.65 billion in fourth‑quarter revenue and $8.53 billion for the full year 2026.

Analysts see the numbers as a signal that Palantir is moving beyond its government‑centric roots into a broader commercial market. The company’s push for AI regulation, including calls to nationalize AI labs, adds a political dimension to its growth story. If the commercial momentum continues, Palantir could reshape the software‑AI landscape and influence how policymakers address data sovereignty and liability in the fast‑evolving AI sector.