Palantir’s U.S. commercial revenue jumps 148% to $984 million in third quarter
Key Facts
Palantir said U.S. commercial revenue rose 148% year over year and 29% from the previous quarter to $984 million in the third quarter of 2026. According to the company’s business update, that revenue exceeded U.S. government revenue for the first time. U.S. government revenue was $953 million, up 96% year over year and 18% quarter over quarter. The results were announced after U.S. markets closed on Monday, November 2, for the quarter ended September 30. The shift in the ranking of U.S. revenue sources highlights accelerating commercial activity alongside continued growth in government business.
Commercial business figures were supported by signs of a broader customer base and large deals during the quarter. The number of U.S. commercial customers rose to 686 in the 12 months ended September 30, up 29% year over year. The company said it closed 212 deals worth $1 million or more in the third quarter. These included 107 worth $5 million or more, and 64 deals worth $10 million or more each. Meanwhile, profitability metrics showed adjusted operating income rising to $1.43 billion, while its margin remained at 62%, the level recorded in the second quarter.
Earnings per share under generally accepted accounting principles were $0.44, while the operating margin under the same standard reached 47% in the third quarter. The Rule of 40 metric rose to 158% from 155% in the second quarter. Palantir ended the period with $10.4 billion in cash, cash equivalents and U.S. Treasuries, with no debt. For its outlook, the company set fourth-quarter revenue at between $2.649 billion and $2.653 billion. It also raised its 2026 revenue forecast to between $8.530 billion and $8.534 billion, and its adjusted operating income forecast to between $5.245 billion and $5.249 billion, while forecasting adjusted free cash flow of between $4.8 billion and $5.0 billion.
The company also raised its 2026 forecast for U.S. commercial revenue to more than $3.559 billion, equivalent to annual growth of at least 143%. The forecast puts U.S. commercial activity at the forefront of the company’s indicators for the year, after it surpassed U.S. government revenue in the third quarter. Palantir had previously announced that its quarterly results would be released after the market closed on November 2. The guidance covers the remainder of the year, with the company expecting fourth-quarter revenue within its stated range. Expected annual commercial revenue growth remains contingent on achieving the announced minimum, according to its business update.