Palantir Q3 Revenue Jumps 96% to $2.31B, Beating Estimates
PLTR sits 66% above its 52-week low of $106.37.
Summary
Palantir beat third-quarter revenue expectations, posting $2.313 billion versus the $2.18 billion analysts expected, up about 96% year over year and 20% quarter-over-quarter, the first quarter above $2 billion. U.S. commercial revenue of $984 million surpassed U.S. government revenue of $953 million for the first time, with U.S. commercial revenue up 148% year over year and 29% quarter-over-quarter and U.S. government revenue up 96% year over year and 18% quarter-over-quarter; U.S. revenue grew 119% year over year and 23% quarter-over-quarter to $1.937 billion. The company reported third-quarter EPS of 44c, GAAP net income of $1.128 billion at a 49% margin and adjusted net income of $1.142 billion, while GAAP income from operations was $1.085 billion (47% margin) and adjusted income from operations $1.427 billion (62% margin). CEO Alex Karp said in the shareholder letter that the company has essentially doubled its entire business since the same quarter last year. Palantir raised its full-year 2026 revenue guidance to between $8.530 and $8.534 billion, implying 91% year-over-year growth, up from the $8.15–$8.16 billion it raised in August, lifted its U.S. commercial revenue guidance to in excess of $3.559 billion, representing growth of at least 143%, and raised its 2026 adjusted free cash flow guidance to between $4.8 billion and $5.0 billion. It sees fourth-quarter revenue of $2.649–$2.653 billion and fourth-quarter adjusted income from operations of $1.640–$1.644 billion. Demand is coming from both US government and commercial clients buying AI-powered data-analytics software, and shares rose 1.4% to $180.77 after hours.
Updated with a Dow Jones Newswires report · What changed
Updates
· Dow Jones Newswires — Palantir's U.S. commercial revenue of $984 million surpassed U.S. government revenue of $953 million for the first time; shares rose 1.4% to $180.77 after hours.
· SEC 8-K — Palantir's Q3 GAAP income from operations was $1.085 billion (47% margin) and adjusted income from operations $1.427 billion (62% margin); Q4 adjusted income from operations guided to $1.640-$1.644 billion.
- Revenue Mix
- U.S. commercial revenue surpassed U.S. government revenue for the first time ever.
- U.S. revenue grew 119% year-over-year and 23% quarter-over-quarter to $1.937 billion.
- U.S. commercial revenue $984 million, up 29% quarter-over-quarter.
- U.S. government revenue $953 million, up 96% year-over-year and 18% quarter-over-quarter.
- Revenue grew 20% quarter-over-quarter to $2.313 billion; first quarter above $2 billion.
- U.S. commercial revenue $984 million, up 148% year-over-year and 29% quarter-over-quarter.
- Deal Activity
- Closed 212 deals of at least $1 million, 107 of at least $5 million, 64 of at least $10 million.
- Total contract value closed $2.918 billion, up 6% year-over-year.
- U.S. commercial TCV closed $1.463 billion, up 11% year-over-year.
- U.S. commercial remaining deal value $6.517 billion, up 79% year-over-year and 4% quarter-over-quarter.
- Profitability
- Rule of 40 score of 158%.
- GAAP net income $1.128 billion, 49% margin; adjusted net income $1.142 billion.
- Adjusted EBITDA $1.434 billion, 62% margin.
- Q3 net income $1.134 billion; net income attributable to common stockholders $1.128 billion.
- Q3 gross profit $1.930 billion; total operating expenses $845.280 million.
- Q3 adjusted net income $1.142 billion after income tax effects and adjustments of $327.660 million.
- Cash Flow
- Cash from operations $1.205 billion (52% margin); adjusted free cash flow $1.216 billion (53% margin).
- Nine-month operating cash flow $3,319,902 thousand; purchases of property and equipment $29,969 thousand.
- Nine-month net cash provided by operating activities $3.320 billion versus $1.357 billion a year earlier.
- Balance Sheet
- Cash, cash equivalents and U.S. Treasury securities of $10.4 billion.
- Total assets $13,412,976 thousand; total equity $11,345,100 thousand as of September 30, 2026.
- Accumulated deficit was $(501,961) thousand as of September 30, 2026, compared with $(3,562,390) thousand as of December 31, 2025.
- Cash and cash equivalents $3.619 billion; marketable securities $6.942 billion as of September 30, 2026.
- Accounts receivable, net $1.883 billion; deferred revenue $661.255 million current as of September 30, 2026.
- Total liabilities $2.068 billion; total Palantir stockholders' equity $11.228 billion as of September 30, 2026.
- Guidance
- Q4 revenue guidance $2.649-$2.653 billion.
- FY2026 revenue guidance raised to between $8.530 - $8.534 billion.
- FY2026 U.S. commercial revenue guidance raised to in excess of $3.559 billion, representing a growth rate of at least 143%.
- FY2026 adjusted income from operations guidance raised to between $5.245 - $5.249 billion.
- FY2026 adjusted free cash flow guidance raised to between $4.8 - $5.0 billion.
- Continues to expect GAAP operating income and net income in each quarter of this year.
- Prior-Year Comparison
- Q3 revenue $2,313,411 thousand versus $1,181,092 thousand a year earlier.
- Nine-month revenue $5.881 billion versus $3.069 billion a year earlier.
- Q3 2025 revenue $1,181,092 thousand; Q3 2025 income from operations $393,256 thousand.
- Per-Share and Expenses
- Basic EPS $0.47; diluted EPS $0.44; adjusted EPS, diluted $0.44.
- Weighted-average diluted shares 2,573,926 thousand.
- Stock-based compensation $318,889 thousand in Q3.
- Q3 sales and marketing $396.711 million; R&D $219.720 million; G&A $228.849 million.
- Q3 interest income $88.936 million; provision for income taxes $13.560 million.
- Nine-month stock-based compensation $785.690 million; Q3 employer payroll taxes related to SBC $23.106 million.
- Basic weighted-average shares 2,405,718 thousand; nine-month diluted weighted-average shares 2,571,225 thousand.
All 45 details
- U.S. commercial revenue surpassed U.S. government revenue for the first time ever.
- U.S. revenue grew 119% year-over-year and 23% quarter-over-quarter to $1.937 billion.
- U.S. commercial revenue $984 million, up 29% quarter-over-quarter.
- U.S. government revenue $953 million, up 96% year-over-year and 18% quarter-over-quarter.
- Revenue grew 20% quarter-over-quarter to $2.313 billion; first quarter above $2 billion.
- Closed 212 deals of at least $1 million, 107 of at least $5 million, 64 of at least $10 million.
- Total contract value closed $2.918 billion, up 6% year-over-year.
- U.S. commercial TCV closed $1.463 billion, up 11% year-over-year.
- U.S. commercial remaining deal value $6.517 billion, up 79% year-over-year and 4% quarter-over-quarter.
- Rule of 40 score of 158%.
- GAAP net income $1.128 billion, 49% margin; adjusted net income $1.142 billion.
- Cash from operations $1.205 billion (52% margin); adjusted free cash flow $1.216 billion (53% margin).
- Adjusted EBITDA $1.434 billion, 62% margin.
- Cash, cash equivalents and U.S. Treasury securities of $10.4 billion.
- Q4 revenue guidance $2.649-$2.653 billion.
- FY2026 revenue guidance raised to between $8.530 - $8.534 billion.
- FY2026 U.S. commercial revenue guidance raised to in excess of $3.559 billion, representing a growth rate of at least 143%.
- FY2026 adjusted income from operations guidance raised to between $5.245 - $5.249 billion.
- FY2026 adjusted free cash flow guidance raised to between $4.8 - $5.0 billion.
- Continues to expect GAAP operating income and net income in each quarter of this year.
- Q3 revenue $2,313,411 thousand versus $1,181,092 thousand a year earlier.
- Nine-month revenue $5,881,458 thousand; nine-month net income $3,076,805 thousand.
- Basic EPS $0.47; diluted EPS $0.44; adjusted EPS, diluted $0.44.
- Weighted-average diluted shares 2,573,926 thousand.
- Stock-based compensation $318,889 thousand in Q3.
- Total assets $13,412,976 thousand; total equity $11,345,100 thousand as of September 30, 2026.
- Accumulated deficit was $(501,961) thousand as of September 30, 2026, compared with $(3,562,390) thousand as of December 31, 2025.
- Nine-month operating cash flow $3,319,902 thousand; purchases of property and equipment $29,969 thousand.
- U.S. commercial revenue $984 million, up 148% year-over-year and 29% quarter-over-quarter.
- Q3 net income $1.134 billion; net income attributable to common stockholders $1.128 billion.
- Nine-month net income attributable to common stockholders $3.060 billion; nine-month diluted EPS $1.19.
- Nine-month revenue $5.881 billion versus $3.069 billion a year earlier.
- Q3 gross profit $1.930 billion; total operating expenses $845.280 million.
- Q3 sales and marketing $396.711 million; R&D $219.720 million; G&A $228.849 million.
- Q3 interest income $88.936 million; provision for income taxes $13.560 million.
- Nine-month stock-based compensation $785.690 million; Q3 employer payroll taxes related to SBC $23.106 million.
- Q3 adjusted net income $1.142 billion after income tax effects and adjustments of $327.660 million.
- Cash and cash equivalents $3.619 billion; marketable securities $6.942 billion as of September 30, 2026.
- Accounts receivable, net $1.883 billion; deferred revenue $661.255 million current as of September 30, 2026.
- Total liabilities $2.068 billion; total Palantir stockholders' equity $11.228 billion as of September 30, 2026.
- Nine-month net cash provided by operating activities $3.320 billion versus $1.357 billion a year earlier.
- Nine-month purchases of marketable securities $5.138 billion; proceeds from sales and redemption $4.079 billion.
- Nine-month proceeds from exercise of common stock options $22.606 million.
- Basic weighted-average shares 2,405,718 thousand; nine-month diluted weighted-average shares 2,571,225 thousand.
- Q3 2025 revenue $1,181,092 thousand; Q3 2025 income from operations $393,256 thousand.
- Revenue Mix
At the time of this announcement, PLTR was trading at $176.55 on NASDAQ in the Technology sector, with a market capitalization of approximately $428.6B. The 52-week trading range was $106.37 to $212.94. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.