Palantir Technologies Inc. said U.S. commercial revenue surpassed government revenue for the first time in the third quarter, even as total contract value retreated from the prior quarter.
Revenue reached $2.313 billion, up 96% from a year earlier. Total contract value (TCV) was $2.918 billion, compared with $3.373 billion in the second quarter, a decline of about 13.5%. TCV's year-over-year increase was 6%, down from 49% in the prior quarter.
The measures track different stages of business activity. TCV is the potential lifetime value of contracts entered into during the quarter, assuming customers exercise available options and do not terminate agreements; revenue is recognized as the company delivers services. The 13.5% TCV decline compares the third quarter with the second, while the TCV growth rate and revenue increase use year-earlier comparisons.
U.S. commercial revenue totaled $984 million, 29% above the prior quarter. U.S. government revenue was $953 million. U.S. commercial TCV fell to $1.463 billion from $2.132 billion in the second quarter, a decline covered in EconoTimes' earlier report on the measure.
On the Nov. 2 earnings call, Chief Financial Officer David Glazer said Palantir had signed multiple eight-figure deals with shorter terms than usual as customers adopted initial Sovereign AI capabilities. He said he expects commercial contracts to grow in size and duration over time.
Palantir shares closed Nov. 10 at $168.82, 19% below the record closing price of $209.05 set Oct. 9. The company forecast 2026 revenue of $8.530 billion to $8.534 billion and fourth-quarter revenue of $2.649 billion to $2.653 billion.
