Palantir Revenue Jumps 93% on US Commercial Demand, Forecast Raised

Palantir Nearly Doubles Revenue as Commercial Clients Sign On

Palantir, the US software group best known for analysing sensitive data for intelligence and military clients, said quarterly revenue rose 93 percent year on year to just under $1.94 billion — comfortably ahead of the roughly $1.8 billion analysts had expected. The stock climbed as much as nine percent in after-hours trading, and the company raised its full-year revenue forecast while issuing a current-quarter outlook above market consensus.

The growth was powered almost entirely by the US. Home-market revenue reached $1.57 billion, more than double the year-earlier level. Sales to federal agencies jumped 90 percent to $809 million, while revenue from US commercial customers grew 149 percent to $764 million. Palantir's software is used by the Department of Homeland Security and the Pentagon, and — according to media reports — played a role in operations related to the Iran conflict, though that specific use has not been officially confirmed.

The quarter marks a shift in Palantir's profile. Long dependent on state and defence contracts, the company is now seeing businesses in the US adopt its data-processing platforms at a rapid pace. With the raised guidance, Palantir signals it expects the current momentum to continue into the second half of the year.

Inside Palantir's Growth: US Commercial Outpaces Government Work

US Commercial Is Now the Growth Engine

Palantir's federal business remains large — $809 million in the quarter — but it no longer defines the company's trajectory. US commercial revenue of $764 million is growing almost twice as fast in percentage terms, and the gap is closing quickly. That matters because it reduces Palantir's dependence on politically sensitive government contracts and opens a much larger addressable market.

Guidance Rides on Repeatable Demand

The raised full-year forecast and an above-consensus outlook for the current quarter suggest management sees the growth as durable, not a one-off project surge. The test for investors is whether commercial customers expand their use of Palantir's AI-driven platforms rather than running a few pilots. The 149 percent growth figure suggests real scaling, but it also sets a high comparison base for next year.

Valuation Expectations Are Rising Fast

Every number in this report is near or above the top of what the market had priced in, which is why the stock moved up sharply after hours. That cuts both ways: continued beats can sustain the rally, but any slowdown in commercial growth will be judged against a much more demanding benchmark.

Iran Reports Add a Political Dimension

Media reports linking Palantir software to operations in the Iran conflict remain unconfirmed. If confirmed, they would sharpen scrutiny of the company's government work and could complicate commercial expansion abroad. For now, the reputational risk is real but not reflected in the numbers.

What to Watch After Palantir's Beat and Raised Forecast

• Investors should treat the full-year guidance raise as the key signal: it implies management expects the US commercial growth rate to stay elevated, and the next quarterly report will show whether the 149 percent pace is sustainable against tougher comparisons.
• Watch the mix between federal ($809 million) and US commercial ($764 million) revenue: if commercial overtakes government sales, Palantir's risk profile changes meaningfully.
• For enterprises evaluating data platforms, the quarter is evidence that Palantir is moving beyond defence; that also means competitors will target its commercial wins more aggressively.