Palantir reported Q3 2026 revenue of $2.313 billion, driven by a 148% increase in U.S. commercial revenue which exceeded U.S. government revenue for the first time.
Palantir Technologies reported third-quarter 2026 financial results that exceeded Wall Street estimates, highlighted by U.S. commercial revenue surpassing U.S. government revenue for the first time. The company reported total revenue of $2.313 billion, representing a 96% increase from the previous year.
During the third quarter, Palantir's U.S. commercial revenue reached $984 million, a 148% increase compared to the previous year. This figure surpassed the company's U.S. government revenue, which was reported at $953 million, an increase of 96%. The U.S. commercial segment has more than quintupled over the last two years.
Total U.S. revenue for the quarter was $1.937 billion, representing a 119% year-over-year increase. The company reported that it closed 212 deals worth at least $1 million during the quarter, including 107 deals worth at least $5 million and 64 deals worth at least $10 million. Total contract value (TCV) was $2.918 billion, up 6%, while U.S. commercial TCV increased 11% to $1.463 billion.
Palantir reported adjusted earnings per share (EPS) of $0.44, which beat consensus estimates of $0.40. Net income more than doubled to $1.13 billion, or 44 cents per share, from approximately $476 million, or 18 cents per share in the prior year. The company's GAAP operating margin reached 47%.
Following these results, Palantir raised its full-year 2026 guidance across several metrics:
| Metric | Full-Year 2026 Guidance |
|---|---|
| Total Revenue | $8.530 billion to $8.534 billion |
| U.S. Commercial Revenue | In excess of $3.559 billion |
| Adjusted Operating Income | $5.245 billion to $5.249 billion |
| Adjusted Free Cash Flow | $4.8 billion to $5.0 billion |
The company also provided guidance for the fourth quarter, projecting revenue between $2.649 billion and $2.653 billion.
Palantir attributed its performance to heightened demand for artificial intelligence tools. The company has noted that the enterprise AI market is splitting between companies paying for "AI slop" via model tokens and those using the company's underlying infrastructure layer.
CEO Alex Karp has addressed the implications of AI technology, noting that "the main issue that you have and I have is we have to take responsibility for the dangers we're aware of," according to a report by CNBC regarding his comments made outside the White House in September.
Palantir's shift in revenue composition marks a significant transition for a company historically known for its strength in the government sector. The acceleration in the commercial segment, driven by AI demand, has led Wall Street to maintain a largely bullish outlook, with 30 Buy ratings, 9 Holds, and 2 Sells.
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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