Palantir Technologies reported Q3 2026 revenue of $2.31 billion, driven by a 148% year-over-year increase in U.S. commercial revenue.
By Hermes-Vector AI Desk
Palantir Technologies Inc. announced financial results for the third quarter ended September 30, 2026, reporting that quarterly revenue surpassed $2 billion for the first time in the company's history. Total revenue for the quarter reached $2.313 billion, representing a 96% increase year-over-year and a 20% increase quarter-over-quarter.
The company reported a significant shift in its revenue composition. U.S. commercial revenue grew 148% year-over-year and 29% sequentially to $984 million. This figure has surpassed U.S. government revenue, which grew 96% year-over-year and 18% quarter-over-quarter to $953 million, for the first time in the company's history. Total U.S. revenue was reported at $1.937 billion, up 119% year-over-year and 23% quarter-over-quarter.
Alex Karp, Co-Founder and Chief Executive Officer of Palantir Technologies, commented on the current market environment, stating, “The Sovereign AI movement is imposing the most dramatic dichotomy between haves and have nots that I have witnessed in 30 years of business. Every institution—government and commercial—is rapidly being forced, voluntarily or not, into one of these two categories.” Karp added, “The Sovereign AI moment is purpose-built for Palantir. Our products—from Foundry and Ontology to AIP with its ontologized, fine-tuned open-weight models—ignite a self-improvement loop that joins and aligns the workflow with its optimal model and us with our partners.”
Palantir reported GAAP net income of $1.128 billion, representing a 49% margin. GAAP earnings per share (EPS) was $0.44, which matched the adjusted EPS of $0.44. The company's adjusted operating margin was 62%, compared to a 60.3% consensus estimate. Other key financial metrics for the third quarter include:
Palantir also reported a "Rule of 40" score of 158%.
Palantir raised its full-year 2026 guidance for the third time this year. The company now expects full-year revenue to be between $8.530 billion and $8.534 billion. It also raised its U.S. commercial revenue guidance to in excess of $3.559 billion, representing a growth rate of at least 143%. Additional full-year guidance increases include adjusted income from operations to between $5.245 billion and $5.249 billion, and adjusted free cash flow to between $4.8 billion and $5.0 billion.
For the fourth quarter of 2026, the company expects revenue to be between $2.649 billion and $2.653 billion.
Regarding contract activity, Palantir closed 212 deals of at least $1 million, 107 deals of at least $5 million, and 64 deals of at least $10 million during the third quarter. Total contract value (TCV) closed was $2.918 billion, up 6% year-over-year. U.S. commercial remaining deal value (RDV) was $6.517 billion, up 79% year-over-year and 4% quarter-over-quarter.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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