Palantir quarterly revenue soars 96pc, US commercial revenue tops government for first time

Adjusted earnings per share hit 44 cents, above the 41 cents consensus forecast and more than double the 21 cents reported in the same quarter last year. Chief Financial Officer David Glazer described the 96 per cent year-on-year growth rate as the "highest-ever" reported by the company, and the sequential quarterly revenue growth rate of 20 per cent also set a record. Total revenue crossed the $2 billion quarterly threshold for the first time.

Palantir has long been known for its strength in the government sector, but its commercial segment caught up in Q3. U.S. commercial revenue has more than quintupled over the past two years, and the company now expects it to exceed $3.56 billion for the full year, up from a previous forecast of $3.42 billion. U.S. government revenue also grew 96 per cent to $953 million, but for the first time lagged behind the commercial division.

In a quarterly letter to investors, Karp wrote that “it would be an understatement” to describe the third-quarter results as extraordinary. In an interview with CNBC, he said he did not believe “anyone's had consistent results like this in the history of software AI, ever,” adding that the business is succeeding without salespeople. On Monday he reiterated calls to nationalise AI labs, calling it the “only realistic way” to manage liability. He told CNBC that the political ramifications of AI are here and cautioned against “thinking you can delay the future”.

Palantir's results came after a sell-off in some tech stocks. Google parent Alphabet lost about $505 billion in market value since publishing its own quarterly figures last week, Intel's stock dropped nearly 29 per cent, and the Nasdaq Composite fell more than 1 per cent on Monday alone. S&P Global research estimates that spending on AI is approaching $2 trillion over two years, and investors are closely watching for evidence that the outlays are generating returns. Palantir has become a bellwether for public market confidence in AI software converting into revenue growth.

The company raised its full-year revenue forecast to between $8.53 billion and $8.534 billion, representing roughly 91 per cent growth, up from as high as $8.2 billion a quarter ago. For the current quarter, Palantir projects about $2.65 billion in revenue, compared with analyst expectations of $2.46 billion.