Palantir Revenue Jumps 96% to $2.31 Billion in Third Quarter
Key Facts
Palantir reported revenue of $2.31 billion in the third quarter of 2026, up 96% year over year and 20% from the previous quarter. In a business update, the company said revenue "grew 96% year over year and 20% quarter over quarter to $2.31 billion." The result topped the average analyst estimate of $2.18 billion, according to MarketBeat. The company released its results after the U.S. market closed on November 2, as previously announced. After the results were published, its shares rose 2.0% in after-hours trading, according to Investing.com.
U.S. operations were the main driver of the results, with revenue rising 119% year over year and 23% quarter over quarter to $1.94 billion. The company attributed the growth to accelerating commercial and government business in the United States. U.S. commercial revenue rose 148% annually and 29% quarterly to $984 million. By comparison, U.S. government revenue increased 96% annually and 18% quarterly to $953 million. Commercial revenue exceeded government revenue for the first time, according to the company update.
The improvement extended to profitability and cash flow, with net income under U.S. generally accepted accounting principles reaching $1.13 billion, compared with $476 million in the third quarter of 2025. Operating margin under the same standards was 47% for the quarter. Adjusted free cash flow was $1.22 billion, up from $540 million a year earlier, with a margin of 53%. Palantir also reported earnings per share of $0.44 under U.S. generally accepted accounting principles. These figures show revenue growth accompanied by increases in earnings and cash flow during the period.
Contracting indicators pointed to continued large deal activity during the quarter, with the company closing 212 deals worth at least $1 million. These included 107 deals worth $5 million or more and 64 deals worth at least $10 million each. However, total remaining performance obligations, representing the value of contracts not yet fulfilled, stood at $4.88 billion at quarter-end, compared with $4.90 billion at the end of the second quarter. On liquidity, the company ended the quarter with $10.4 billion in cash, cash equivalents and U.S. Treasury securities, with no debt. Together, these figures show the value of deals signed, the backlog of obligations and the reported liquidity position.
The company raised its fiscal 2026 revenue forecast to a range of $8.530 billion to $8.534 billion. It expects U.S. commercial revenue to exceed $3.559 billion for the year, representing growth of at least 143%. For the fourth quarter of 2026, it expects revenue of between $2.649 billion and $2.653 billion. Palantir had announced that results for the third quarter, ended September 30, would be released after the market closed on November 2, and scheduled a webcast to discuss them for 5:00 p.m. Eastern Time that day. The forecast follows actual third-quarter revenue growth of 96% year over year.