Palantir Technologies reported third-quarter revenue of $2.313 billion, up 96% on the same period a year earlier, beating Wall Street expectations and lifting its guidance for the full year. It was the first quarter in which the artificial intelligence software company has passed $2 billion in revenue.

The results, released on Monday after the close of trading in the United States, came in ahead of the $2.18 billion consensus forecast. Adjusted earnings per share were $0.44, against $0.41 expected, while adjusted operating income reached $1.427 billion, a margin of 62%.

The strongest growth came from Palantir’s commercial business in the United States. US commercial revenue rose 148% year on year to $984 million, and for the first time it was larger than US government revenue, which stood at $953 million. Net income under US accounting rules rose to $1.128 billion, from about $476 million a year earlier.

Palantir also raised its outlook. It now expects fourth-quarter revenue of between $2.649 billion and $2.653 billion, against a consensus forecast of about $2.46 billion, and full-year revenue of $8.530 billion to $8.534 billion, up from $8.150 billion to $8.158 billion. That implies growth of at least 91% for the year as a whole.

Chief executive Alex Karp said: “I don’t believe anyone’s had consistent results like this in the history of software AI, ever.”

The market reaction was mixed. The shares had already fallen 3% in the regular session before the results, and they slipped further in early trading on Tuesday, changing hands at about $167.48 in premarket trading, down about 6.1% from Monday’s close of $178.34.

One figure gave investors pause. The total value of contracts signed in the quarter rose only 6% to $2.918 billion, far slower than revenue growth, suggesting that some of the quarter’s surge came from work already in hand rather than new orders. The next test will be whether contract signings pick up in the fourth quarter.

Even so, the report underlines how quickly Palantir’s commercial business is now growing. US commercial revenue has become the company’s largest single source of sales, and management raised its guidance for that segment to more than $3.56 billion for the year, implying growth of at least 143%.

Palantir also lifted its guidance for adjusted free cash flow to between $4.8 billion and $5.0 billion for the year, against market expectations of about $4.52 billion. Even after the recent sell-off, the company’s market value stands at about $430 billion, roughly 50 times the revenue it now expects for 2026, a level that leaves little room for disappointment.

Sources: Benzinga via TradingView and AskTraders.