Palantir Technologies reported third-quarter 2026 revenue of $2.31 billion, up 96% from a year earlier, beating analysts’ expectations and raising its full-year outlook again as corporate demand for its artificial intelligence software continued to surge.
The data-analytics company, reporting after the US market closed on Monday 2 November, said revenue for the quarter ended 30 September 2026 reached $2.313 billion, against $1.18 billion in the same quarter a year ago. Analysts had expected about $2.18 billion, according to data compiled by LSEG and cited by Reuters. Adjusted earnings were $0.44 a share, above the $0.41 consensus.
US commercial sales pass government sales
The most notable shift in the quarter was inside the United States. US commercial revenue rose 148% year on year to $984 million, up 29% from the previous quarter, while US government revenue rose 96% to $953 million. That left commercial sales ahead of government sales in the US for the first time in the company’s history, a milestone chief executive Alex Karp highlighted in the company’s announcement.
Total US revenue reached $1.94 billion, up 119% year on year. Adjusted income from operations was $1.427 billion, a 62% margin, and Palantir’s GAAP operating margin improved to 47% from 33% a year ago.
“We have now essentially doubled our entire business since the same quarter last year,” Karp said in his letter to shareholders, as reported by Reuters.
Guidance raised again
Palantir raised its guidance for the rest of the year. For the fourth quarter it expects revenue of $2.649 billion to $2.653 billion, above the roughly $2.46 billion analysts had expected, with adjusted operating income of $1.640 billion to $1.644 billion.
For full-year 2026 it now expects revenue of $8.530 billion to $8.534 billion, up from its previous range of $8.150 billion to $8.158 billion — growth of about 91% — and US commercial revenue above $3.559 billion, growth of at least 143%.
The catch: new contracts grew far more slowly
The market’s cooler reaction points to the tension underneath the headline numbers. Palantir closed $2.92 billion in total contract value in the quarter, up only 6% from a year earlier, and newly signed US commercial contracts rose only about 11%, even as US commercial revenue jumped 148%.
Revenue reflects work recognised during the quarter, much of it from contracts signed earlier. Contract value captures potential business over the life of new agreements, so if signings do not pick up, today’s growth rate will be harder to sustain. Shares slipped about 3% in after-hours trading after the release, despite the beat on both revenue and earnings.
That distinction matters for investors watching the wider AI trade: Palantir’s quarter strengthens the case that corporate AI spending is translating into real revenue, but the bookings figures will be the number to watch next quarter to see whether the growth engine is being replenished as fast as it is being used.
What to watch next
Palantir’s fourth-quarter guidance implies roughly 15% sequential revenue growth. Whether commercial signings recover, and whether government demand holds alongside the commercial surge, will decide whether the company can keep doubling at anything like this pace into 2027.
FAQ
How much revenue did Palantir report for Q3 2026? $2.313 billion, up 96% year on year, above the roughly $2.18 billion analysts expected.
Why did Palantir shares fall despite the beat? Investors focused on slower new-contract growth: total contract value rose only 6% year on year to $2.92 billion, far below the 96% revenue growth.
What is Palantir’s new full-year guidance? Revenue of $8.530 billion to $8.534 billion for 2026, with US commercial revenue above $3.559 billion.
Sources
- Palantir press release via BusinessWire: https://www.businesswire.com/news/home/20261101396214/en/Palantir-Reports-Q3-2026-U.S.-Comm-Revenue-Growth-of-148-YY-and-Revenue-Growth-of-96-YY-Raises-FY-2026-Revenue-Guidance-to-91-YY-Growth-and-U.S.-Comm-Revenue-Guidance-to-143-YY-Crushing-Consensus-Expectations
- Reuters via SRN News: https://srnnews.com/palantir-expects-quarterly-revenue-above-estimates-on-strong-ai-demand/
- Motley Fool rapid reaction: https://www.fool.com/investing/2026/11/02/palantir-grows-revenue-96-as-new-deals-slow-rapid-earnings-reaction/
- Invezz: https://invezz.com/news/2026/11/02/palantir-delivers-blowout-quarter-but-theres-a-catch/
