Palantir raises full-year revenue outlook as US commercial sales top US government revenue for the first time

Palantir ( PLTR ) beat Wall Street estimates on its third quarter revenue and profit on Monday and raised its full-year revenue outlook as the data software company's US commercial business surpassed its US government sales for the first time ever.

Shares of Palantir were volatile in after-hours.

Palantir reported Q3 revenue of $2.313 billion, a 96% increase from the previous year. Wall Street had expected revenue of $2.17 billion, according to Bloomberg data.

Palantir now sees full-year revenue between $8.530 billion and $8.534 billion, topping analyst estimates of $8.2 billion. The company also raised its US commercial sales target to more than $3.559 billion. Adjusted earnings per share of $0.44 also beat consensus estimates of $0.40.

As for the company's explosive business, Palantir CEO Alex Karp said during the earnings call, "We've gone from being the most attractive person in the physics department to being the captain of the football team."

What else you need to know: Palantir stock is up roughly 2% year to date, even as the company has been caught in the recent tech sell-off. The stock weathered headwinds earlier this year after fears of AI disruption hit the entire software complex.

Palantir has frequently pushed back on those concerns, arguing that the enterprise AI market is splitting into two camps: companies paying millions of dollars for model tokens only to receive "AI slop," and those using the company's underlying infrastructure layer.

Palantir's commercial business has accelerated sharply, building on momentum from its historically dominant US government base.

Earlier this year, Palantir's Maven Smart System became an official Pentagon program, cementing a multiyear role across US military AI projects

Wall Street is mostly bullish on the stock, with 30 Buy ratings, 9 Holds, 2 Sells, and a consensus price target of $216 per share.