Palantir reported $1.463 billion in U.S. commercial total contract value (TCV) for the third quarter, about 31% below the $2.132 billion record set three months earlier.
The measure was up 11% from a year earlier, and executives described shorter customer agreements.
TCV reflects the potential value of contracts if customers exercise every option and do not terminate their agreements. It includes customer options that have yet to be exercised and is distinct from revenue recognized for the quarter.
The decline contrasts with the revenue growth EconoTimes reported earlier. Third-quarter revenue totaled $2.313 billion, up 96% from a year earlier. U.S. commercial revenue was $984 million, up 148%.
On Palantir's Nov. 2 earnings call, CEO Alex Karp said commercial customers were moving from initial discussions to deployment more quickly. He described shorter agreements that could be expanded later.
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. Glazer said he expects commercial contracts to grow in size and duration over time.
Palantir forecasts fourth-quarter revenue of $2.649 billion to $2.653 billion.
