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Palantir Technologies nearly doubled third-quarter revenue to $2.313 billion and raised its full-year outlook Monday, as U.S. commercial sales overtook U.S. government revenue for the first time.
The software company reported revenue growth of 96% from a year earlier and 20% from the second quarter, crossing $2 billion in quarterly sales for the first time, according to its third-quarter earnings release.
Palantir raised its 2026 revenue guidance to $8.530 billion-$8.534 billion. It projected fourth-quarter revenue of $2.649 billion-$2.653 billion, making the outlook another measure of the pace management expects after the latest quarter.
Commercial sales lead the U.S. business
U.S. commercial revenue rose 148% from a year earlier and 29% sequentially to $984 million. U.S. government revenue increased 96% annually and 18% sequentially to $953 million.
Together, U.S. revenue reached $1.937 billion, up 119% year over year. The commercial business exceeding government revenue is a milestone in the company’s sales mix, though both operations continued to grow rapidly.
Chief Executive Alex Karp described demand for what he called “Sovereign AI” as a major force behind the business. That is management’s assessment of the opportunity, distinct from the financial results already recorded.
Profit and cash flow rise alongside sales
Palantir reported GAAP net income attributable to common stockholders of $1.128 billion, representing a 49% margin, and diluted earnings of 44 cents a share. Adjusted diluted earnings were also 44 cents a share.
GAAP operating income was $1.085 billion, a 47% margin. Adjusted operating income was $1.427 billion, a 62% margin. The adjusted figures exclude items included under generally accepted accounting principles and should not be treated as substitutes for the GAAP measures.
Cash from operations reached $1.205 billion. Adjusted free cash flow was $1.216 billion, while cash, equivalents and U.S. Treasury securities totaled $10.4 billion.
Contract growth is not the same as current revenue
The company closed 212 deals worth at least $1 million, including 107 worth at least $5 million and 64 worth at least $10 million. Those thresholds overlap; they are not separate groups to add together.
Total contract value closed during the quarter was $2.918 billion, up 6% year over year. U.S. commercial total contract value was $1.463 billion, up 11%. U.S. commercial remaining deal value reached $6.517 billion, up 79% annually and 4% sequentially.
Those contract measures describe business signed or remaining under the company’s definitions, rather than revenue recognized in the quarter. The gap between 96% revenue growth and 6% total contract value growth is a reason to read the measures separately rather than describing all bookings as having doubled.
A higher full-year forecast
Palantir’s revised outlook calls for U.S. commercial revenue above $3.559 billion in 2026, representing growth of at least 143%. The company raised adjusted operating-income guidance to $5.245 billion-$5.249 billion and adjusted free cash flow guidance to $4.8 billion-$5.0 billion.
For the fourth quarter, it forecast adjusted operating income of $1.640 billion-$1.644 billion. It continued to expect positive GAAP operating income and net income in each quarter of the year.
The outlook remains a forecast, not revenue or profit already earned. This report covers the company’s release and does not assign an after-hours stock reaction or a consensus beat without a separately verified market source.
JBizNews Desk | Miami
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