Palantir ($PLTR) generated $984 million in third-quarter revenue from U.S. businesses, surpassing the $953 million it earned from the U.S. government. It was the first time commercial customers accounted for the larger of the company’s two U.S. revenue streams. The crossover came even as U.S. government revenue nearly doubled from a year earlier. U.S. commercial revenue grew 148%, helping lift Palantir’s total quarterly revenue 96% to $2.31 billion. Analysts had expected about $2.18 billion. Yorkville Ives analyst Dan Ives sees an explanation in how Palantir sells its software. Companies start with hands-on sessions where they can try the technology on their own problems. Ives said customers are taking those early projects into day-to-day operations and expanding their use across the business. Palantir reported $1.43 billion in adjusted operating income, equal to 62% of revenue. It also raised its full-year adjusted free cash flow outlook to between $4.8 billion and $5 billion. Management now expects about $8.53 billion in revenue for 2026, implying 91% growth, up from its earlier forecast of 82%. Ives kept his $250 price target and Outperform rating. His case for 2027 depends on whether the next wave of customers follows the same path from an initial trial to software they pay to use throughout their operations.