Palantir Q3 Revenue Shows Commercial Shift
Palantir Q3 revenue rose as U.S. commercial revenue topped government, shifting investor positioning after management raised full-year revenue guidance.
KEY TAKEAWAYS
- U.S. commercial revenue reached $984 million and topped U.S. government revenue by $31 million.
- Total Q3 revenue was $2.3 billion, reflecting 96% year-over-year growth for the quarter.
- Management raised full-year revenue guidance to about $8.5 billion and lifted U.S. commercial outlook.
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Palantir Technologies Inc. (PLTR) reported on Nov. 2, 2026, that its third-quarter revenue rose sharply as U.S. commercial revenue surpassed U.S. government revenue for the first time. The company also raised its full-year revenue guidance, reflecting growing demand for its artificial-intelligence analytics.
Quarter Results and Profitability
For the quarter ended Sept. 30, 2026, Palantir reported total revenue of $2.313 billion, a 96% increase year over year that exceeded its prior guidance range of $2.160 billion to $2.164 billion. Net income attributable to common stockholders rose to approximately $1.13 billion from about $476 million in the same period last year. Diluted earnings per share increased to $0.44 from $0.18.
The company posted GAAP operating income of roughly $1.085 billion, representing a 47% operating margin, and adjusted operating income of about $1.427 billion, a 62% margin. Operating cash flow was approximately $1.205 billion, and adjusted free cash flow was near $1.216 billion, both reflecting a 53% margin.
Guidance and Commercial Revenue Shift
Palantir’s U.S. commercial revenue reached $984 million in the quarter, up 148% year over year and 29% sequentially. U.S. government revenue was $953 million, rising 96% year over year and 18% sequentially. Commercial revenue exceeded government revenue by $31 million, marking the first time this has occurred in the company’s history.
Total U.S. revenue was $1.937 billion, up 119% year over year and 23% sequentially.
The company raised its full-year 2026 revenue guidance to approximately $8.53 billion, reflecting about 91% growth from the prior year. Fourth-quarter revenue guidance was set at roughly $2.65 billion. Palantir also lifted its full-year U.S. commercial revenue outlook to more than $3.56 billion, a 143% increase year over year. The prior full-year revenue guidance had been between $8.150 billion and $8.158 billion. The company raised guidance for adjusted operating income and adjusted free cash flow as well.
Palantir filed a Form 8-K on Nov. 2 reporting these results under Item 2.02 and Regulation FD disclosures under Item 7.01. The filing included the earnings release, shareholder letter, and investor presentation as related disclosures.
The quarter’s revenue mix and raised guidance indicate a significant shift toward commercial customers and a substantial increase in the company’s scale for fiscal 2026. This growth reflects rising demand for Palantir’s AI analytics software across both government and commercial sectors.
