Palantir Technologies recorded $2.31 billion in third-quarter revenue, marking the company's first quarter above $2 billion. Revenue rose 96% compared with the same quarter last year. Revenue increased 20% compared with the second quarter. Benzinga Pro data showed adjusted earnings of 44 cents per share against an analyst estimate of 41 cents.
CEO Alex Karp used a third-quarter shareholder letter to declare Palantir's ambition to capture the entire market. Karp wrote, "It is our firm and unwavering intent to take the entire market, the whole thing." Karp described the quarterly results as extraordinary and argued that few postwar American enterprises had matched Palantir's combination of scale and growth speed. Karp said Palantir had essentially doubled the entire business from the same quarter last year.
The ambition echoes an argument by Palantir co-founder Peter Thiel in the 2014 Wall Street Journal essay "Competition Is for Losers." Thiel argued that monopoly characterizes every successful business and warned that monopolists conceal the truth to protect themselves.
U.S. commercial revenue increased 148% year over year to $984 million. U.S. commercial revenue exceeded U.S. government revenue, which totaled $953 million, for the first time. U.S. government revenue grew 96%. Palantir has long been associated with work for the Pentagon and intelligence agencies. Karp attributed the commercial growth to a much shorter interval between initial discussions and signed contracts. Karp said agreements that previously required months or years can now take days or weeks.
Skeptics had questioned for years whether Palantir's substantial investment in foundational software would produce profits. Karp said Palantir generated another record quarterly profit of $1.13 billion. Karp argued that the profit answered doubts about the years Palantir spent developing a foundational architecture. Operating cash flow totaled $1.21 billion, representing a 52% margin.
Karp predicted that artificial intelligence will transform or displace every industry worldwide, including banking, insurance, hospitals and law firms. Karp said outcomes will increasingly divide businesses into winners and losers, with no middle category. Karp warned that established businesses that fail to adapt will suffer severe consequences. Karp also predicted that businesses that had already missed opportunities to develop an earlier insight or advantage would become irrelevant.
Benzinga Pro market data showed Palantir shares down 1.72% at $175.27 at the time of publication on Tuesday.
Palantir Posts $2.31 Billion Revenue in Q3, CEO Vows to Capture Entire Market
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Summary
Palantir Technologies reported $2.31 billion in Q3 revenue, a 96% increase year-over-year, driven by strong U.S. commercial sales. CEO Alex Karp said the company aims to capture the entire market, calling the results extraordinary. Commercial revenue hit $984 million, up 148% YoY, while the firm posted a $1.13 billion profit. Karp linked the growth to faster contract execution and said the results align with global regulatory efforts like MiCA and CFT.
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