Investing.com — Palantir Technologies raised its full-year revenue forecast on Monday after reporting a 96% jump in third-quarter revenue, driven by accelerating demand for its artificial intelligence software in the United States, where commercial sales surpassed government revenue for the first time.
For the fourth quarter, Palantir expects revenue of between $2.649 billion and $2.653 billion and adjusted operating income of $1.64 billion to $1.644 billion.
For the full year, the company raised its revenue forecast to between $8.53 billion and $8.534 billion, implying annual growth of approximately 91%. It also increased its U.S. commercial revenue growth forecast to at least 143%, with revenue expected to exceed $3.56 billion.
The stronger outlook highlights the company’s ability to translate rising AI adoption into rapid commercial growth, although sustaining that pace will depend on continued customer spending and the conversion of its expanding contract pipeline into recognised revenue.
The software company reported revenue of $2.31 billion for the quarter ended September 30, compared with $1.18 billion a year earlier. Revenue increased 20% sequentially, while U.S. revenue surged 119% year-over-year to $1.94 billion.
The results underscore the growing contribution of commercial customers to Palantir’s business as companies accelerate investments in artificial intelligence and adopt its software to integrate AI models into operational workflows. U.S. commercial revenue climbed 148% year-over-year to $984 million, up 29% from the previous quarter, exceeding U.S. government revenue of $953 million for the first time in the company’s history. Government revenue rose 96% year-over-year.
Chief Executive Alex Karp said the growing adoption of what he called sovereign AI was creating a widening divide between institutions capable of deploying the technology and those falling behind. He said Palantir’s software platforms, including Foundry and its Artificial Intelligence Platform, were helping customers integrate AI into their operations.
Palantir’s profitability also strengthened sharply. GAAP income from operations rose to $1.08 billion from $393.3 million a year earlier, representing an operating margin of 47%. Adjusted operating income increased to $1.43 billion, with an adjusted operating margin of 62%, compared with 51% a year earlier.