Palantir’s U.S. commercial revenue overtakes government in Q3

Palantir’s third-quarter results showed its U.S. commercial business overtaking its U.S. government segment in revenue, marking a change in the balance between its two largest domestic customer groups.

The result shifts the emphasis from Palantir’s established government work toward adoption by commercial customers. It also gives the quarter a different mix from the company’s traditional public-sector identity, although the available details do not quantify the revenue of either segment or the size of the gap.

For Palantir, the commercial segment connects directly to enterprise software demand and the monetization of its AI offerings, while the government segment remains tied to public-sector contracts. The company’s FY 2025 figures show $4.5 billion of revenue, up 56.2% year over year, alongside an 82.4% gross margin and 36.3% net margin, but those annual figures do not establish the third-quarter segment growth rates.

The key uncertainty is whether the commercial lead represents a durable change in customer mix or a quarter-specific result. The next earnings release should show whether commercial revenue remains above U.S. government revenue and whether the shift is accompanied by continued growth in total revenue and profitability.