Palantir Technologies Inc (NYSE:PLTR) stock fell 4.82% (As on Nov 10, 11:05:03 AM UTC-4, Source: Google Finance) after the company beat analyst expectations on revenue and met earnings estimates. Some of its prominent clients have included U.S. government agencies like the Department of Defense. In recent years, Palantir has sought to diversify its business and saw a rise in demand for its technology during the Covid pandemic, as countries sought to parse through health data. In July, the Department of Health and Human Services renewed an agreement with Palantir to use its software to track vaccine distribution. During the quarter, U.S. commercial revenue grew 103% year over year and its commercial customer count was up 46% from the previous quarter, Palantir said. The company reported government revenue of $218 million. Palantir has added 34 net new customers in the third quarter and closed 33 deals worth $5 million or more and 18 deals valued at $10 million or more.

PLTR in the third quarter of FY 21 has reported the adjusted earnings per share of 4 cents, which is inline with the analysts’ estimates for the adjusted earnings per share of 4 cents, according to Refinitiv. The company had reported the adjusted revenue growth of 36 percent to $418 million in the third quarter of FY 21, beating the analysts’ estimates for revenue of $402 million.

Palantir expects revenue for the fourth quarter to come in at $418 million, beating current Refinitiv estimates of $402 million. The company expects Q4 adjusted operating margin to be of 22%.

The revenue for the full year is expected to be about $1.53 billion or 40% year-over-year growth. The company has raising the outlook for full year 2021 adjusted free cash flow to in excess of $400 million, up from in excess of $300 million.

Palantir also reaffirmed it expects annual revenue growth of 30% or more through 2025.

Meanwhile, it has been a tough quarter on the government side of the business, with numerous contractors reporting revenue slowdowns, but Palantir’s business showed strong resilience. Palantir remains to be very defense-focused business. Government contracts accounted for nearly 56% of total sales, and that segment is growing at nearly the same pace as its commercial business. If those trends continue, Palantir will remain closely tied to the defense business for the foreseeable future. As such, it’s going to be hard-pressed to deliver the growth rates that investors envisioned when it first went public.