U.S. Commercial Overtakes Government at Palantir

Palantir just pulled off a first: U.S. commercial sales outpaced its government business, helping to fuel a near-doubling in both revenue and profits. The stakes? Commercial contracts tend to move faster, which could mean a new era of growth—if those headline numbers hold up. But underneath the sprint, contract bookings tell a murkier story, rising just 6% from a year ago and even falling quarter-over-quarter, as big deals got shorter. The company’s “Sovereign AI” pitch—letting customers own their own AI models—drove some eye-popping expansion in the U.S. But with international sales lagging and the mix anchored in U.S. budgets, this is still a highly concentrated bet.

Here’s the catch: geopolitics is crashing the party. Palantir’s defense chief, ex-congressman Mike Gallagher, is warning that AI could tip the balance in a Taiwan conflict and put the entire chip supply chain at risk—a message aimed squarely at U.S. budget makers. That national security narrative wins headlines and contracts but risks making Palantir toxic for foreign governments, already wary after UK, Scottish, and Canadian backlash over procurement and data oversight.

Based on reporting from The Futurum Group, 24/7 Wall St., Yahoo Finance UK, CBC, The Guardian, and Dataconomy.

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