A major challenge in quantum metrology is the generation of entangled states with a macroscopic atom number. Here, we demonstrate experimentally that atomic squeezing generated via nonlinear dynamics in Bose-Einstein condensates, combined with suitable trap geometries, allows scaling to large ensemble sizes. We achieve a suppression of fluctuations by 5.3(5) dB for 12,300 particles, from which we infer that similar squeezing can be obtained for more than 10(7)  atoms. With this resource, we demonstrate quantum-enhanced magnetometry by swapping the squeezed state to magnetically sensitive hyperfine levels that have negligible nonlinearity. We find a quantum-enhanced single-shot sensitivity of 310(47) pT for static magnetic fields in a probe volume as small as 90  μm3.