Palantir Q3 revenue hit $2.313 billion, up 96% year over year and well ahead of the roughly $2.18 billion Wall Street expected, as surging demand for its AI software powered results across every major business segment. The data analytics company also raised its full-year 2026 revenue guidance to a range of $8.530 billion to $8.534 billion, above the prior consensus of about $8.2 billion, implying roughly 91% growth for the year. Palantir reported the results after the US market closed on Monday, November 2.
US commercial revenue was the standout line, rising 148% year over year to $984 million, ahead of the $943 million estimate and up 29% sequentially. For the first time in company history, Palantir’s commercial business in the United States was larger than its US government business, which grew 96% to $953 million. Total US revenue reached $1.937 billion, up 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,” CEO Alex Karp said in the quarterly letter, the Motley Fool reported. Karp added that the company has “essentially doubled our entire business since the same quarter last year.”
Profitability held at scale
The quarter marked the first time Palantir’s revenue crossed $2 billion in a single quarter. Profitability remained unusually high for a company growing this fast: GAAP income from operations was $1.085 billion for a 47% margin, while adjusted operating income reached $1.427 billion, a 62% margin that beat the roughly $1.26 billion analysts had modeled. GAAP net income was $1.128 billion, a 49% margin, and the company’s Rule of 40 score, revenue growth plus adjusted margin, hit 158%.
The guidance raise carried most of the weight for investors. Palantir lifted its full-year 2026 revenue outlook from the previous range of $8.150 billion to $8.158 billion and now expects full-year US commercial revenue to exceed $3.6 billion, representing 143% growth. For the fourth quarter, the company guided revenue of $2.649 billion to $2.653 billion, well above the roughly $2.46 billion consensus, with adjusted operating income of $1.640 billion to $1.644 billion against estimates near $1.41 billion.
The one caution: new deals slowed
The quarter was not flawless. Total contract value closed was $2.92 billion, up only 6% from a year earlier, and US commercial remaining deal value rose just 4% from last quarter even as US commercial revenue grew 29%, a gap that could signal slower bookings ahead. Shares fell about 3% in after-hours trading despite the beat, as investors weighed whether the contract slowdown matters more than the record quarter, Fool’s rapid reaction noted.
The results also extended a broader pattern: Palantir raised its full-year revenue guidance again, the latest in a streak of upgrades driven by enterprise demand for its Artificial Intelligence Platform (AIP) and Ontology software. The company reported the quarter after the US market closed on November 2, 2026, InvestingLive reported.
