Palantir Q3 2026: Revenue Up 96% to $2.313 Billion as U.S. Commercial Overtakes Government
U.S. commercial revenue grew 148% to $984 million and passed U.S. government revenue for the first time, and Palantir raised its full-year guidance.
Published
Last updated / Fact-checked on
Palantir Technologies said third-quarter revenue rose 96% from a year earlier to $2.313 billion, its first quarter above $2 billion, according to its November 2 earnings release. U.S. commercial revenue, up 148% to $984 million, passed U.S. government revenue for the first time.
Photo: AS_Photography / Pixabay
The company also raised its full-year 2026 outlook. It now expects revenue of $8.530 billion to $8.534 billion, which its headline puts at 91% growth.
The quarter in numbers
| Metric (Q3 2026) | Result | Change |
|---|---|---|
| Revenue | $2.313B | +96% y/y, +20% q/q |
| U.S. revenue | $1.937B | +119% y/y |
| U.S. commercial revenue | $984M | +148% y/y, +29% q/q |
| U.S. government revenue | $953M | +96% y/y, +18% q/q |
| GAAP operating income | $1.085B | 47% margin |
| Adjusted operating income* | $1.427B | 62% margin |
| GAAP net income | $1.128B | 49% margin |
| Adjusted free cash flow* | $1.216B | 53% margin |
| GAAP and adjusted EPS | $0.44 | — |
Non-GAAP, company-reported. Source: Palantir Q3 2026 release.
Revenue in the same quarter a year earlier was $1.181 billion, according to the release's income statement.
Commercial passes government
The crossover is the quarter's main story. Palantir long depended on government contracts. Now its U.S. businesses are almost evenly split, with commercial slightly ahead.
Chief Executive Alex Karp framed this around what he calls Sovereign AI. "The Sovereign AI movement is imposing the most dramatic dichotomy between haves and have nots that I have witnessed in 30 years of business," he said in the release. He said every institution is being forced "into one of these two categories."
Karp credited Palantir's products, from Foundry and Ontology to its AI Platform (AIP) with "ontologized, fine-tuned open-weight models."
Profits and cash
GAAP operating income was $1.085 billion, a 47% margin. Adjusted operating income, which excludes stock-based compensation and related payroll taxes, was $1.427 billion, or 62%.
Cash from operations was $1.205 billion. Palantir ended the quarter with $10.4 billion in cash, cash equivalents and U.S. Treasury securities.
Its "Rule of 40" score, which adds revenue growth to adjusted operating margin, was 158%. That is the company's own non-GAAP measure.
Deals and pipeline
Palantir closed 212 deals worth at least $1 million, including 107 of at least $5 million and 64 of at least $10 million.
Total contract value (TCV) was $2.918 billion, up 6%. U.S. commercial TCV was $1.463 billion, up 11%. U.S. commercial remaining deal value was $6.517 billion, up 79% year over year but only 4% from the prior quarter.
TCV grew far more slowly than revenue. Palantir notes that most contracts can be ended early and that TCV assumes customers exercise all their options.
Guidance raised
| Outlook | Range |
|---|---|
| Q4 2026 revenue | $2.649B–$2.653B |
| Q4 adjusted operating income* | $1.640B–$1.644B |
| FY 2026 revenue | $8.530B–$8.534B |
| FY U.S. commercial revenue | More than $3.559B (at least 143% growth) |
| FY adjusted operating income* | $5.245B–$5.249B |
| FY adjusted free cash flow* | $4.8B–$5.0B |
Non-GAAP. Source: Palantir.
The release headline says the outlook is "crushing consensus expectations." The release does not give the consensus figures, and DailyMech has not compared them independently.
What to watch
- The commercial lead. Whether U.S. commercial revenue stays ahead of government next quarter.
- Bookings vs. revenue. Whether 6% TCV growth and 4% sequential RDV growth signal slower growth ahead.
- Q4 delivery. Whether results land inside the narrow $2.649 billion to $2.653 billion range.
More coverage is on our Artificial Intelligence hub.
How we reported this
Every figure comes from Palantir's own press release, read in full on its investor-relations site, including the financial tables. Adjusted measures are non-GAAP and company-reported. We cite no analyst estimates. Palantir's quarterly 10-Q will provide fuller detail.
Published and fact-checked November 2, 2026.
Sources
- Palantir Technologies, Q3 2026 earnings release, Nov. 2, 2026: https://investors.palantir.com/news-details/2026/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
- Palantir CEO letters: https://www.palantir.com/newsroom/letters
DailyMech used AI tools to help research and draft this article; it was fact-checked by our editors.