The Pulse
Palantir Revenue Jumps 96% as U.S. Commercial Sales Lead
Palantir reported $2.31 billion in third-quarter 2026 revenue, up 96% year over year, as U.S. commercial revenue grew 148%. The company raised its full-year revenue forecast to about $8.53 billion and said U.S. commercial sales topped gover
AI.info Team · Written with AI · fact-checked ·
Palantir Technologies reported $2.313 billion in revenue for the quarter ended September 30, a 96% increase from a year earlier, in results announced November 2. The company also said quarterly revenue topped $2 billion for the first time. U.S. commercial revenue rose 148% to $984 million, edging past U.S. government revenue, which reached $953 million.
Commercial sales pass government revenue
The U.S. business generated $1.937 billion in revenue, up 119% year over year and 23% from the second quarter. The shift toward commercial customers marks a first for Palantir, whose government work has long been a defining part of its business. U.S. commercial sales rose 29% sequentially; government revenue increased 18%.
Chief Executive Alex Karp tied the results to demand for the company’s AI products, including its Artificial Intelligence Platform, or AIP. In his shareholder letter, he wrote: “The demand for our sovereign AI solutions that we began building long before the language models arrived has been absolutely ravenous and remains far from sated in the United States; indeed, its lifespan can be measured in quarters, not years.” Alex Karp, chief executive, Palantir
Deal totals offer another measure of demand
Palantir closed 212 deals worth at least $1 million during the quarter, including 107 worth at least $5 million and 64 worth at least $10 million. Total contract value reached $2.918 billion, up 6% year over year, while U.S. commercial contract value rose 11% to $1.463 billion. Those increases were much smaller than the 96% jump in quarterly revenue.
Contract value is not the same as revenue already earned. Palantir defines it as the potential lifetime value of contracts at signing, and its calculation assumes customers exercise available options and do not terminate contracts. The company says most contracts can be terminated, including for convenience, and that options may not be exercised.
Palantir lifts its 2026 revenue forecast
The company raised its full-year revenue guidance to between $8.530 billion and $8.534 billion. It now expects U.S. commercial revenue to exceed $3.559 billion, representing growth of at least 143%. For the fourth quarter, Palantir forecast revenue of $2.649 billion to $2.653 billion.
The revised forecast follows a quarter in which U.S. commercial revenue advanced faster than the government business, but it remains management’s projection rather than a reported result. Palantir also raised its full-year adjusted operating income forecast to between $5.245 billion and $5.249 billion, and expects adjusted free cash flow of $4.8 billion to $5 billion.
GAAP operating margin reaches 47%
Palantir reported $1.128 billion in net income attributable to common stockholders and diluted earnings of 44 cents per share. GAAP operating income was $1.085 billion, a 47% margin. The company’s adjusted operating income was $1.427 billion, or a 62% margin, after excluding stock-based compensation and related employer payroll taxes.
Cash from operations totaled $1.205 billion, and adjusted free cash flow was $1.216 billion. Palantir ended September with $10.4 billion in cash, cash equivalents and U.S. Treasury securities. Its next reported revenue target is the fourth-quarter range of $2.649 billion to $2.653 billion.