Palantir Revenue Jumps 96% to $2.31 Billion as U.S. Commercial Sales Pass Government Revenue for First Time
Palantir reported third-quarter revenue of $2.31 billion, up 96% from a year earlier, but its shares slipped on Tuesday as new U.S. commercial contract signings fell from the prior quarter's record.
Palantir reported third-quarter revenue of $2.31 billion on Monday, up 96% from a year earlier and 20% from the second quarter, TechCrunch reported. It was the first quarter in which the data analysis company passed $2 billion in revenue, and the result beat analyst expectations of $2.18 billion.
Adjusted earnings per share came in at 44 cents, above the 41 cents analysts expected. U.S. commercial revenue rose 148% to $984 million, passing U.S. government revenue of $953 million for the first time.
New contracts slowed even as revenue rose
The softer point in the report was new business. Palantir closed $1.46 billion in total contract value from U.S. enterprises in the quarter, down from a record $2.13 billion in the prior quarter. TechCrunch reported that companies are signing shorter trial contracts for AI software, moving to deployment faster but committing for less time at first.
Chief Executive Alex Karp told analysts on the earnings call that customers are reaching deployment more quickly and can expand contracts later, according to TechCrunch. The company’s software lets firms run frontier models and train open-weight models without sharing their data with outside AI labs, TechCrunch reported.
Shares slip as guidance rises
Despite the beat, the stock traded slightly lower on Tuesday, with retail investors lukewarm on the report, according to TechCrunch. Palantir raised its guidance for U.S. commercial revenue to more than $3.559 billion for the year, growth of at least 143%.
Reporting based on coverage by TechCrunch.
