Palantir Technologies reported third-quarter revenue of $2.3 billion, a 96% jump from $1.2 billion a year earlier that marks the fastest year-over-year growth rate in the company's history. The quarter also produced the highest sequential expansion on record at 20%, pushing quarterly sales past the $2 billion threshold for the first time. Adjusted and GAAP earnings per share both landed at 44 cents, up from 21 cents and 18 cents respectively in the same period last year. Analysts had modeled $2.18 billion in revenue and 41 cents in adjusted profit.

Guidance reset lifts full-year target

Management raised the full-year revenue forecast to a range of $8.53 billion to $8.534 billion, implying roughly 91% growth, up from a previous ceiling of $8.2 billion. For the current quarter the company sees $2.64 billion to $2.65 billion, about 88% growth at the midpoint, well above the $2.46 billion consensus. U.S. commercial revenue guidance was lifted to 143% year-over-year growth. The prior quarter's guide had been $2.16 billion to $2.164 billion.

Commercial business passes government for first time

U.S. commercial revenue surged 148% to $984 million from $397 million, overtaking U.S. government revenue of $953 million, which itself grew 96% from $486 million. Total contract value rose 6% to $2.9 billion while U.S. commercial contract value climbed 11% to $1.5 billion. Investors treat the commercial segment as the clearest signal that enterprises, not just agencies, are willing to pay for AI software at scale.

Market reaction stays cautious

Shares rose 1.5% in the immediate after-hours session before reversing to a 3.6% decline. The print arrived days after Alphabet recorded its worst single-day drop in 22 years as a public company, shedding $505 billion in market value, and Intel fell roughly 29% last week. The Nasdaq Composite is down 4% over five sessions. S&P Global research puts cumulative AI spending near $2 trillion over two years, a pace that has so far outrun measurable returns for many vendors.

Karp frames the quarter as an inflection

Chief executive Alex Karp described the 96% growth rate as "absolutely striking" and said it would be an understatement to call the results extraordinary. He argued that every industry from banks to law firms will be remade or set aside, and claimed the company's earnings calls, streamed on YouTube, are now the most-watched in the world. Chief financial officer David Glazer labeled the year-over-year and sequential growth rates the highest ever reported.