Palantir Revenue Nearly Doubles in Q3 as US Business Surges
Direct answer
Palantir reported third quarter 2026 revenue of $2.31 billion, up 96 percent from a year earlier and above both its own guidance and analyst expectations. US commercial revenue passed US government revenue for the first time, which was the clearest sign that business customers are now driving a large part of its growth.
What happened
Palantir, a software company that helps large organisations analyse data, announced results for the quarter ended September 30, 2026, after US markets closed on November 2, 2026. Palantir reported the results in its company announcement, and Seeking Alpha reported the headline figures from that release.
Total revenue reached $2.313 billion, up 96 percent year on year and 20 percent from the previous quarter. That was the first quarter in which revenue passed $2 billion. It was also above the $2.160 billion to $2.164 billion range Palantir had guided to, and above the $2.18 billion analyst consensus reported before the release.
US revenue grew 119 percent year on year and 23 percent quarter on quarter to $1.937 billion. Inside that total, US commercial revenue grew 148 percent year on year and 29 percent quarter on quarter to $984 million, while US government revenue grew 96 percent year on year and 18 percent quarter on quarter to $953 million. That left commercial sales slightly ahead of government sales in the United States for the first time.
Profit also rose sharply. GAAP net income was $1.128 billion, a 49 percent margin, and both GAAP earnings per share and adjusted earnings per share were $0.44. Adjusted earnings per share beat the $0.41 consensus by $0.03. GAAP income from operations was $1.085 billion, a 47 percent margin, and adjusted income from operations was $1.427 billion, a 62 percent margin.
Palantir also raised its full year 2026 guidance, lifting expected revenue growth to 91 percent year on year and expected US commercial revenue growth to 143 percent year on year.
Why it matters for beginners
Revenue is the money a company earns from selling its products and services, before costs are taken out. When revenue nearly doubles in a year, it usually means more customers are buying, existing customers are spending more, or both.
The split between commercial and government sales matters because it shows where growth is coming from. A company that depends on one type of customer can be more exposed if that customer pulls back. In this quarter, Palantir grew strongly on both sides, but US business customers grew fastest.
Margins matter too. A margin shows how much of each dollar of revenue is left as profit after a set of costs. A 62 percent adjusted operating margin is high for a software company, and it helps explain why investors pay close attention to Palantir even when its share price moves sharply.
This result also arrived after a difficult October for AI-linked shares, when investors questioned whether heavy spending on artificial intelligence was paying off fast enough. A strong result from a well known AI-linked software company does not settle that debate, but it gives investors a fresh set of numbers to weigh against those worries.
What to watch next
Watch the fourth quarter update for whether US commercial growth stays ahead of US government growth, and whether full year revenue lands near the raised guidance. Watch margins as well, since fast growth is harder to sustain if costs rise faster than sales. Also watch how the share price reacts over the next few sessions, rather than in the first minutes after the release, since early moves after earnings can reverse quickly.
FAQ
What does Palantir sell?
Palantir sells software that helps organisations bring together large amounts of data, spot patterns, and make decisions. Its customers include businesses and government agencies.
Why was this quarter closely watched?
Palantir had guided to about $2.16 billion in revenue, while analysts expected about $2.18 billion. Beating both figures, and raising full year guidance, mattered because the company had already grown 93 percent in the previous quarter and expectations were high.
Does a strong quarter mean the stock will rise?
Not necessarily. Share prices reflect expectations, valuation, guidance, and wider market mood, not just one quarter. A beat can still lead to a fall if investors expected even more, or if the wider market is falling.
Where can I read the company announcement?
The figures in this post come from Palantir’s third quarter 2026 announcement, as reported by Seeking Alpha, with an external link to that report in the body above.
