Palantir Revenue Nearly Doubles as U.S. Commercial Passes Government for the First Time

Palantir Technologies reported third-quarter revenue of $2.313 billion on Monday, up 96 percent from a year earlier.

Palantir sells data-analytics and artificial intelligence software to governments and companies. It reported results for the quarter ended September 30, 2026, after the market close on Monday, November 2.

“We have now essentially doubled our entire business since the same quarter last year,” chief executive Alex Karp said in a letter to shareholders, as reported by Reuters. In the release itself, Karp pointed to the same crossover the numbers show below.

Commercial passed government for the first time

U.S. revenue rose 119 percent to $1.937 billion, up 23 percent from the second quarter. Inside that total, U.S. commercial revenue jumped 148 percent to $984 million, up 29 percent sequentially. U.S. government revenue rose 96 percent to $953 million, up 18 percent sequentially.

The quarter cleared the bar analysts had set. Analyst estimates compiled by LSEG put revenue at $2.18 billion, and analysts projected adjusted earnings of $0.41 per share. Palantir reported adjusted earnings per share (EPS) of $0.44, and diluted GAAP EPS was also $0.44.

Margins most software companies never reach

GAAP income from operations was $1.085 billion, a 47 percent operating margin. Adjusted income from operations, a company-defined measure that excludes stock-based compensation, was $1.427 billion. That is a 62 percent adjusted operating margin.

Net income was $1.134 billion, and net income attributable to common stockholders was $1.128 billion, a 49 percent margin. Cash from operations reached $1.205 billion, and adjusted free cash flow was $1.216 billion, a company-defined measure.

Palantir's Rule of 40 score was 158 percent. The company defines that score as revenue growth plus its adjusted operating margin. It ended the quarter with $10.4 billion in cash, cash equivalents and U.S. Treasury securities.

Guidance jumped, not nudged

For the fourth quarter, Palantir expects revenue of $2.649 billion to $2.653 billion. The LSEG analyst average was $2.46 billion, according to Reuters. The company expects fourth-quarter adjusted income from operations of $1.640 billion to $1.644 billion.

The midpoint of that fourth-quarter range implies sequential revenue growth of about 15 percent, an article calculation from the two quarters. Whether demand can sustain that pace is the question the deal figures below raise.

For the full year, Palantir raised revenue guidance to $8.530 billion to $8.534 billion, about 91 percent growth. Its second-quarter release had guided to $8.150 billion to $8.158 billion. Adjusted operating income guidance rose to $5.245 billion to $5.249 billion.

Adjusted free cash flow guidance rose to $4.8 billion to $5.0 billion, on the company-defined basis. U.S. commercial revenue guidance rose to more than $3.559 billion, growth of at least 143 percent. The company also expects GAAP operating income and net income in every quarter this year.

The tension: new deals barely grew

Total contract value (TCV), the company's measure of the potential lifetime value of deals signed in the period, told a slower story. Palantir closed $2.918 billion of TCV, up just 6 percent from a year earlier. It closed 212 deals of at least $1 million.

U.S. commercial TCV rose 11 percent to $1.463 billion. U.S. commercial remaining deal value (RDV), the value left on signed contracts, was $6.517 billion. RDV rose 79 percent from a year earlier but only 4 percent from the second quarter.

That 4 percent sequential rise sits against a 29 percent sequential jump in U.S. commercial revenue. Growth is currently running well ahead of new-deal replenishment. William Blair analyst Louie DiPalma said the 11 percent bookings growth was the lowest since 2023, Investor's Business Daily reported.

Shares were last up 1.5 percent in volatile extended trading on Monday evening, Reuters reported. That is an after-hours snapshot from the report's publication, not a closing price. The regular session had already ended when the results were released.

What remains unknown

What remains unknown starts with why TCV growth slowed to 6 percent. The release gives no reason, and no breakdown of how much closed value came from new customers. Whether the fourth-quarter guide depends on deals not yet signed is likewise unstated.

The release also does not say when U.S. commercial RDV converts to revenue. Government revenue growth of 96 percent is stated without contract-by-contract detail. Readers should treat the guidance as the company's expectation, not a reported result.

What to watch next

What to watch next is whether new signings re-accelerate. Fourth-quarter TCV and RDV will show whether the 6 percent and 4 percent growth rates were a pause or a pattern. The fourth-quarter revenue guide, near $2.65 billion, is the first test.

Watch also whether U.S. commercial revenue stays ahead of government revenue. That ordering, new this quarter, is central to how the company describes its future. If government retakes the lead, the crossover story changes.