Palantir Revenue Jumps 96 Percent as Commercial Sales Top Government

Strong demand for artificial intelligence software helped Palantir Technologies deliver record quarterly revenue and shift its business balance toward commercial customers. The company reported its third-quarter 2026 financial results on November 2, with US commercial revenue exceeding government sales for the first time in its history.

According to Palantir's earnings announcement, total revenue reached $2.313 billion for the quarter ended September 30, representing a 96% increase year over year and 20% growth from the previous quarter. Revenue also exceeded $2 billion for the first time.

The company's adjusted earnings per share reached $0.44, beating the $0.41 expected by analysts surveyed by LSEG. Revenue also exceeded the $2.18 billion consensus estimate, according to CNBC.

US commercial revenue climbed 148% year over year to $984 million, while US government revenue increased 96% to $953 million. Total US revenue reached $1.937 billion, representing annual growth of 119%.

Palantir CEO Alex Karp highlighted the significance of the changing revenue composition and the growing demand for artificial intelligence solutions.

"The Sovereign AI movement is imposing the most dramatic dichotomy between haves and have nots that I have witnessed in 30 years of business. Every institution—government and commercial—is rapidly being forced, voluntarily or not, into one of these two categories. Witness our third quarter results: overall revenue soared 96% year-over-year, U.S. commercial revenue grew 148% year-over-year and 29% sequentially, and aggregate U.S. revenue grew 119% year-over-year. Our U.S. commercial revenue has surpassed our U.S. government revenue for the first time in our company’s history." said Alex Karp, Co-Founder and Chief Executive Officer of Palantir Technologies.

Karp also described the company's artificial intelligence products as central to its position in the emerging Sovereign AI market. Palantir's portfolio includes Foundry, Ontology, and its Artificial Intelligence Platform, known as AIP.

"The Sovereign AI moment is purpose-built for Palantir. Our products—from Foundry and Ontology to AIP with its ontologized, fine-tuned open-weight models—ignite a self-improvement loop that joins and aligns the workflow with its optimal model and us with our partners. This dialectic drives transformational value for both Palantir and our partners—and works only in artistic combination. Each becomes stronger as the sum becomes more powerful." said Alex Karp, Co-Founder and Chief Executive Officer of Palantir Technologies.

During an interview with CNBC, Karp expressed confidence in the company's performance and its approach to expanding its business.

"I don't believe anyone's had consistent results like this in the history of software AI, ever," said Alex Karp, CEO of Palantir Technologies.

He also discussed the company's operating model, which he said was succeeding without relying on salespeople. Palantir has increasingly expanded its commercial business alongside its established government operations.

CNBC also reported that Karp reiterated his position on government oversight of artificial intelligence development, including his support for nationalizing AI laboratories.

"only realistic way" said Alex Karp, CEO of Palantir Technologies.

His comments came amid broader discussions about AI regulation and the responsibilities of companies developing advanced systems.

"My message to everybody is: Beware of thinking you can delay the future in AI," said Alex Karp, CEO of Palantir Technologies.

He continued by emphasizing the immediate political implications of technological developments.

"The future is here. The political ramifications of it are here." said Alex Karp, CEO of Palantir Technologies.

Palantir's latest financial figures also showed substantial profitability. Net income attributable to common stockholders reached $1.128 billion, compared with approximately $476 million in the same quarter a year earlier. Diluted earnings per share increased from $0.18 to $0.44.

Operating income under generally accepted accounting principles reached $1.085 billion, producing a 47% margin. Adjusted operating income totaled $1.427 billion, equivalent to a 62% margin.

Cash from operations amounted to $1.205 billion, while adjusted free cash flow reached $1.216 billion. The company ended the quarter with $10.4 billion in cash, cash equivalents, and US Treasury securities.

Commercial demand was also reflected in contract activity. Palantir closed 212 deals worth at least $1 million, including 107 deals of at least $5 million and 64 deals of at least $10 million. Total contract value reached $2.918 billion, while US commercial contract value amounted to $1.463 billion.

Following the results, Palantir raised its full-year 2026 revenue forecast to between $8.530 billion and $8.534 billion. Its US commercial revenue outlook increased to more than $3.559 billion, implying annual growth of at least 143%.

For the fourth quarter, the company expects revenue between $2.649 billion and $2.653 billion. Adjusted operating income is projected to reach between $1.640 billion and $1.644 billion.

Palantir also raised its full-year adjusted operating income guidance to between $5.245 billion and $5.249 billion, while maintaining an adjusted free cash flow forecast of $4.8 billion to $5.0 billion.

The company scheduled its third-quarter earnings webcast for 5 p.m. Eastern Time on November 2, 2026, to discuss its financial performance and updated outlook.