Key takeaways
- Palantir reported Q3 revenue of $2.313 billion, up 96%, and GAAP EPS of $0.44 on November 2.
- U.S. commercial revenue rose 148% to $984 million and passed U.S. government revenue for the first time.
- Full-year revenue guidance rose to $8.530 billion to $8.534 billion.
Palantir reported third-quarter revenue of $2.313 billion on November 2, up 96% from a year earlier, and raised its full-year forecast. It is the first quarter in which the company's U.S. commercial revenue ($984 million) passed its U.S. government revenue ($953 million), according to Palantir's earnings release filed with the SEC. We covered the date of the report beforehand.
Palantir earnings matter to AI watchers because the company sells software that puts AI models to work inside large organizations, and its growth is one of the clearest readings on whether companies pay for that.
The quarter in numbers
| Measure | Q3 2026 |
|---|---|
| Revenue | $2.313B, up 96% year over year, up 20% from Q2 |
| U.S. revenue | $1.937B, up 119% |
| U.S. commercial revenue | $984M, up 148% |
| U.S. government revenue | $953M, up 96% |
| GAAP net income | $1.128B (49% margin) |
| GAAP and adjusted EPS | $0.44 each |
| Adjusted free cash flow | $1.216B (53% margin) |
| Cash and Treasuries | $10.4B |
Revenue passed $2 billion in a quarter for the first time. Palantir closed 212 deals worth at least $1 million, 107 worth at least $5 million and 64 worth at least $10 million. Total contract value closed was $2.918 billion, up 6%, a much slower rate than revenue.
Nasdaq's earnings calendar listed a consensus EPS forecast of $0.32 for the quarter.
Guidance goes up
Palantir now expects fourth-quarter revenue of $2.649 billion to $2.653 billion and adjusted operating income of $1.640 billion to $1.644 billion. For the full year 2026 it raised its revenue forecast to $8.530 billion to $8.534 billion, which it describes as 91% growth. It also raised its U.S. commercial revenue forecast to above $3.559 billion, at least 143% growth, and its adjusted free cash flow forecast to $4.8 billion to $5.0 billion.
What Karp said
CEO Alex Karp framed the results around what he calls "Sovereign AI", writing that every institution is being pushed into one of two categories, "haves and have nots". The release does not define the term. Palantir's own numbers are the evidence here: the figures are from the company, and the release shows non-GAAP measures such as adjusted free cash flow and a "Rule of 40 score" of 158% that Palantir defines itself.
What to watch next
The earnings webcast ran at 5:00 p.m. ET on November 2, after the U.S. market closed, so the stock's reaction comes in the next session. Palantir files its quarterly report on Form 10-Q with the SEC, which will carry more detail on customers and risks.
