Palantir reported third-quarter results after the bell Monday that topped Wall Street's estimates, with revenue topping $2 billion for the first time in the company's history.

Adjusted earnings per share came in at 44 cents versus 41 cents expected, and revenue reached $2.31 billion against $2.18 billion expected.

The landmark development was segmental: U.S. commercial revenue jumped 148% to $984 million, surpassing U.S. government revenue of $953 million, up 96%, for the first time ever.

Shares initially dipped about 3% in extended trading according to CNBC, while SiliconANGLE reported the stock rose more than 1% in late trading.

Palantir has long been known as a government contractor, so commercial demand overtaking public-sector sales marks a genuine reversal in the company's identity.

CNBC reports the shift is driven by businesses adopting more of the company's artificial intelligence tools, with U.S. commercial revenue having more than quintupled over the last two years.

CEO Alex Karp told CNBC's Seema Mody, "I don't believe anyone's had consistent results like this in the history of software AI, ever," adding that the business is succeeding without salespeople.

SiliconANGLE notes the company closed 212 deals worth at least $1 million, including 64 worth $10 million or more, with U.S. commercial remaining deal value climbing 79% to $6.517 billion.

According to SiliconANGLE, net income more than doubled to $1.128 billion from $476 million a year earlier, a 49% net margin, while adjusted operating income reached $1.427 billion at a 62% margin and adjusted free cash flow was $1.216 billion.

The company's Rule of 40 score hit 158%, and it ended September holding $10.4 billion in cash, cash equivalents and U.S. Treasury securities. Total contract value rose 6% year over year to $2.918 billion, and total U.S. revenue reached $1.937 billion, up 119%.

CNBC likewise reports net income more than doubled to $1.13 billion, or 44 cents per share.

Palantir lifted its full-year revenue guidance for the third time this year, according to SiliconANGLE, now projecting $8.530 billion to $8.534 billion, up from the $8.150 billion to $8.158 billion forecast in August.

U.S. commercial revenue is expected to exceed $3.559 billion, growth of at least 143%, up from the prior $3.42 billion forecast CNBC cites. Fourth-quarter revenue is guided to $2.649 billion to $2.653 billion, above analysts' $2.46 billion consensus.

Karp also used the release to argue the "Sovereign AI movement" is creating the sharpest haves-and-have-nots divide he has seen in 30 years, and reiterated calls to nationalize AI labs, calling it the "only realistic way" to manage liability.