The third-quarter results for 2026, as published by Palantir Technologies, far exceeded market expectations, with revenue growing by 96% year-on-year and surpassing $2 billion for the first time. In particular, U.S. commercial revenue surpassed government revenue for the first time, marking an important milestone in the company's history. Subsequently, the company significantly raised its full-year guidance, indicating that the commercialization of its artificial intelligence business is advancing at a pace far beyond external expectations.
Palantir, co-founder and CEO Alex Karp, stated in a performance statement that "the wave of sovereign AI is creating the most intense wealth disparity I have seen in my 30-year career," and pointed out that every government and business institution is forced to quickly take a side. The company's consolidated revenue for the quarter reached $2.313 billion, with U.S. business revenue increasing by 148% year-over-year, and the total contract value (TCV) reaching $2.918 billion.
Following the release of these financial results, Palantir has raised its annual revenue forecast to between $8.53 billion and $8.534 billion, representing a year-over-year increase of approximately 91%; its U.S. commercial revenue forecast for the year has also been raised to over $3.559 billion, with a year-over-year growth rate of no less than 143%. All of these figures significantly exceed market expectations prior to this announcement.
Palantir rose 1.6% after the market close.
Revenues break through 2 billion for the first time, and American business is accelerating comprehensively
Palantir In the third quarter, consolidated revenue reached $2.313 billion, a year-on-year increase of 96% and a month-on-month increase of 20%, marking the first time in the company's history that quarterly revenue has exceeded $2 billion.
The U.S. market performed particularly well. Overall U.S. revenue increased by 119% year-over-year and 23% month-over-month to reach $1.937 billion. Among this, U.S. commercial revenue grew by 148% year-over-year and 29% month-over-month to $984 million, while U.S. government revenue increased by 96% year-over-year and 18% month-over-month to $953 million.
It is noteworthy that U.S. commercial revenue surpassed U.S. government revenue for the first time this quarter, marking a historic shift in the revenue structure of Palantir. The company has long relied on government contracts for its business, and the strong rise in commercial revenue indicates that its AI platform AIP is being more widely adopted by corporate clients.
Large orders continue to flow in, with ample contract reserves.
At the contractual level, Palantir completed a total of 212 transactions of no less than $1 million in that quarter, 107 transactions of no less than $5 million, and 64 transactions of no less than $10 million, indicating that the purchasing willingness of major customers remains strong.
In the current quarter, TCV reached $2.918 billion, a year-on-year increase of 6%; US commercial TCV amounted to $1.463 billion, with a year-on-year growth of 11%. The remaining contract value of US commercial RDV reached $6.517 billion, showing a substantial year-on-year increase of 79% and a month-on-month increase of 4%, providing a solid guarantee for the continued realization of future revenue.
Improvement in profit quality, accelerated cash accumulation
In terms of profitability, in the third quarter, GAAP achieved an operating profit of $1.085 billion with a profit margin of 47%; after adjustments, the operating profit was $1.427 billion, with a profit margin of 62%. GAAP reported a net profit of $1.128 billion and a net profit margin of 49%, while GAAP had an earnings per share of $0.44.
Cash flow performance was also strong. Operating cash flow amounted to $1.205 billion, with a profit margin of 52%; adjusted free cash flow was $1.216 billion, with a profit margin of 53%. At the end of the quarter, the company held a total of $10.4 billion in cash, cash equivalents, and U.S. Treasury bonds, indicating a solid financial position.
The comprehensive score of company Rule of reaches 158%, far exceeding the industry-standard healthy benchmark of 40%, reflecting its ability to maintain extremely high profitability while experiencing rapid growth.
Annual guidance significantly raised, with a strong outlook for the fourth quarter
In terms of outlook, Palantir expects revenue in the fourth quarter to range from $2.649 billion to $2.653 billion, with adjusted operating profit ranging from $1.640 billion to $1.644 billion.
For the entire year of 2026, the company has raised its revenue guidance to $8.53 billion to $8.534 billion, adjusted operating profit guidance to $5.245 billion to $5.249 billion, and adjusted free cash flow guidance to $4.8 billion to $5 billion. It also reiterates that it will achieve GAAP operating profit and net profit for each quarter of the year.
Alex Karp emphasized in the statement that Palantir's product ecosystem – ranging from Foundry, Ontology to AIP which incorporates an ontology-based fine-tuned open-source model – forms a self-reinforcing loop that continuously aligns workflows with the optimal models, and deeply binds this capability with partners. He referred to this synergistic effect as 'dialectical value creation', believing that this model 'only works in artistic combinations'.
