Palantir Revenue Jumps 96%: U.S. Commercial Overtakes Government for the First Time

Palantir Technologies (NASDAQ: PLTR) reported third-quarter revenue of $2.31 billion on Monday, November 2, 2026, up 96% year over year and above the $2.18 billion analysts expected — and, for the first time in the company's history, U.S. commercial revenue surpassed U.S. government revenue. Adjusted earnings came in at $0.44 a share, beating consensus by $0.03, in a report released after the market close.

What happened?

Palantir's revenue grew 96% year over year and 20% quarter over quarter to $2.313 billion, the company's first quarter above $2 billion. U.S. commercial revenue surged 148% year over year and 29% quarter over quarter to $984 million. U.S. government revenue grew 96% year over year and 18% quarter over quarter to $953 million. Total U.S. revenue grew 119% to $1.937 billion.

Profitability stayed unusually high for that growth rate. GAAP income from operations was $1.085 billion, a 47% margin. Adjusted income from operations was $1.427 billion, a 62% margin, and GAAP net income was $1.128 billion, a 49% margin. Both GAAP and adjusted earnings per share were $0.44.

Chief executive Alex Karp told shareholders the company had essentially doubled its entire business since the same quarter last year, according to Reuters coverage of the results.

Why is it blowing up?

The headline is not just the beat — it is the mix shift underneath it. Palantir built its reputation, and most of its early revenue, on U.S. government work. A quarter in which American businesses paid Palantir more than the U.S. government did is the clearest sign yet that its commercial AI business, not only its defence and intelligence contracts, is now driving growth. MarketWatch called the result a major AI turning point, and Barron's said Palantir is not reliant on the government anymore as commercial sales soar.

The deal numbers support that reading. Palantir said it closed 64 deals worth at least $10 million in the quarter, with total contract value of $2.92 billion, up 6% year over year, according to MarketWatch.

The share reaction was positive but restrained. The stock had closed the regular session down 3.13% at $178.34, then rose 2.5% to $182.84 in after-hours trading, Barron's reported. That modest move, after options had priced a far larger earnings swing, reflects how high the bar already was: the shares trade at premium multiples, and investors had expected a beat — the question was its size and the guidance that followed it.

Key facts

• Revenue: $2.313 billion, up 96% year over year, beating the $2.18 billion average estimate compiled by LSEG and reported by Reuters.
• Earnings: Adjusted and GAAP EPS of $0.44, above the $0.41 FactSet consensus cited by MarketWatch.
• U.S. commercial: $984 million, up 148% year over year — above U.S. government revenue for the first time ever.
• U.S. government: $953 million, up 96% year over year.
• Margins: GAAP operating margin 47%; adjusted operating margin 62%; GAAP net income $1.128 billion.
• Guidance: Fourth-quarter revenue forecast of $2.649 billion to $2.653 billion, above the $2.46 billion FactSet consensus, and full-year revenue raised to $8.53 billion to $8.534 billion.

What's next?

Palantir raised its full-year outlook along with the beat. The company now expects full-year 2026 revenue growth of about 91%, with U.S. commercial revenue growth of about 143%, and full-year U.S. commercial sales projected to exceed $3.559 billion, according to its release and MarketWatch.

What investors watch next is whether Tuesday's regular session holds the after-hours gain, whether commercial growth can stay near this pace in the fourth quarter, and whether a valuation that already prices in years of fast growth leaves room for disappointment. The report itself does not answer those questions — it shows a business that just crossed $2 billion in a quarter, with its newest engine, U.S. commercial sales, now its largest U.S. source of revenue.

Sources: Reuters, MarketWatch, Barron's, Seeking Alpha.

FAQ

How much revenue did Palantir report in Q3 2026?

Palantir reported $2.313 billion, up 96% year over year and 20% quarter over quarter, beating the $2.18 billion analysts expected. It was the company's first quarter above $2 billion.

Why is U.S. commercial revenue overtaking government revenue important?

It is the first time businesses paid Palantir more in the U.S. than the government did — $984 million versus $953 million — showing commercial AI demand, not only government contracts, is now driving growth.

What guidance did Palantir give?

Palantir forecast fourth-quarter revenue of $2.649 billion to $2.653 billion and raised full-year revenue guidance to $8.53 billion to $8.534 billion, with U.S. commercial sales expected to exceed $3.559 billion.

How did Palantir stock react?

Shares rose 2.5% to $182.84 in after-hours trading after closing the regular session down 3.13% at $178.34, a modest reaction for a large beat because expectations and valuation were already high.