Palantir Reports Q3 2026 U.S. Comm Revenue Growth of 148% Y/Y and Revenue Growth of 96% Y/Y; Raises FY 2026 Revenue Guidance to 91% Y/Y Growth and U.S. Comm…
Palantir Technologies Inc. (PLTR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Palantir Reports Q3 2026 U.S. Comm Revenue Growth of 148% Y/Y and Revenue Growth of 96% Y/Y; Raises FY 2026 Revenue Guidance to 91% Y/Y Growth and U.S. Comm Revenue Guidance to 143% Y/Y, Crushing Consensus Expectations 11/2/2026 MIAMI — (BUSINESS WIRE) — Palantir Tec
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance are likely to drive short‑term buying pressure and may lift related AI‑focused equities.
Market read
Palantir's strong results and raised guidance could act as a catalyst for the broader AI sector and technology market.
What to watch
Potential regulatory scrutiny on AI applications could temper upside.
Palantir Reports Q3 2026 U.S. Comm Revenue Growth of 148% Y/Y and Revenue Growth of 96% Y/Y; Raises FY 2026 Revenue Guidance to 91% Y/Y Growth and U.S. Comm Revenue Guidance to 143% Y/Y
Revenue grew 96% year-over-year to $2.313 billion, U.S. commercial revenue grew 148% to $984 million, and GAAP income from operations reached $1.085 billion at a 47% margin. The company raised full-year revenue, U.S. commercial revenue, adjusted income from operations, and adjusted free cash flow guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 revenueGAAP | $2.31B | 20% | 96 % |
| Nine months ended September 30, 2026 revenueGAAP | $5.88B | – | – |
| Q3 2026 cost of revenueGAAP | $383.3M | – | – |
| Nine months ended September 30, 2026 cost of revenueGAAP | $896.0M | – | – |
| Q3 2026 gross profitGAAP | $1.93B | – | – |
| Nine months ended September 30, 2026 gross profitGAAP | $4.99B | – | – |
| Q3 2026 sales and marketing expenseGAAP | $396.7M | – | – |
| Q3 2026 research and development expenseGAAP | $219.7M | – | – |
| Q3 2026 general and administrative expenseGAAP | $228.8M | – | – |
| Q3 2026 total operating expensesGAAP | $845.3M | – | – |
| Nine months ended September 30, 2026 total operating expensesGAAP | $2.23B | – | – |
| Q3 2026 income from operationsGAAP | $1.08B | – | – |
| Nine months ended September 30, 2026 income from operationsGAAP | $2.75B | – | – |
| Q3 2026 GAAP operating marginGAAP | 47% | – | – |
| Q3 2026 adjusted income from operationsnon-GAAP | $1.43B | – | – |
| Nine months ended September 30, 2026 adjusted income from operationsnon-GAAP | $3.60B | – | – |
| Q3 2026 adjusted operating marginnon-GAAP | 62 % | – | – |
| Nine months ended September 30, 2026 adjusted operating marginnon-GAAP | 61 % | – | – |
| Q3 2026 interest incomeGAAP | $88.94M | – | – |
| Q3 2026 other income (expense), netGAAP | −$25.78M | – | – |
| Q3 2026 income before provision for income taxesGAAP | $1.15B | – | – |
| Q3 2026 provision for income taxesGAAP | $13.56M | – | – |
| Q3 2026 net incomeGAAP | $1.13B | – | – |
| Q3 2026 net income attributable to common stockholdersGAAP | $1.13B | – | – |
| Nine months ended September 30, 2026 net income attributable to common stockholdersGAAP | $3.06B | – | – |
| Q3 2026 GAAP net income marginGAAP | 49% | – | – |
| Q3 2026 basic EPSGAAP | $ 0.47 | – | – |
| Q3 2026 diluted EPSGAAP | $ 0.44 | – | – |
| Nine months ended September 30, 2026 diluted EPSGAAP | $ 1.19 | – | – |
| Q3 2026 adjusted net income attributable to common stockholdersnon-GAAP | $1.14B | – | – |
| Q3 2026 adjusted EPS, dilutednon-GAAP | $ 0.44 | – | – |
| Q3 2026 cash from operationsGAAP | $1.20B | – | – |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | $3.32B | – | – |
| Q3 2026 adjusted free cash flownon-GAAP | $1.22B | – | – |
| Q3 2026 adjusted free cash flow marginnon-GAAP | 53 % | – | – |
| Q3 2026 adjusted EBITDAnon-GAAP | $1.43B | – | – |
| Q3 2026 adjusted EBITDA marginnon-GAAP | 62 % | – | – |
| Q3 2026 Rule of 40 scoreother | 158% | – | – |
| Q3 2026 total contract valueother | $2.92B | – | 6% |
| Q3 2026 U.S. commercial total contract valueother | $1.46B | – | 11% |
| Q3 2026 U.S. commercial remaining deal valueother | $6.52B | 4% | 79% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| U.S. revenueU.S. commercial revenue surpassed U.S. government revenue for the first time ever. | $1.94B | 23% | 119% |
| U.S. commercial revenueU.S. commercial revenue surpassed U.S. government revenue for the first time in the company’s history. | $984M | 29% | 148% |
| U.S. government revenueReported as part of aggregate U.S. revenue growth. | $953M | 18% | 96% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Q4 2026 and full year 2026 outlook
- RevenueQ4 2026: between $2.649 - $2.653 billion; full year 2026: between $8.530 - $8.534 billion
- NoteQ4 2026 adjusted income from operations of between $1.640 - $1.644 billion.
- NoteFull year 2026 U.S. commercial revenue in excess of $3.559 billion, representing a growth rate of at least 143%.
- NoteFull year 2026 adjusted income from operations between $5.245 - $5.249 billion.
- NoteFull year 2026 adjusted free cash flow between $4.8 - $5.0 billion.
- NoteThe company continues to expect GAAP operating income and net income in each quarter of this year.
What drove it
- Quarterly revenue surpassed $2 billion for the first time ever.
- The company closed 212 deals of at least $1 million, 107 deals of at least $5 million, and 64 deals of at least $10 million.
- U.S. commercial remaining deal value was $6.517 billion, up 79% year-over-year and 4% quarter-over-quarter.
- Adjusted operating margin was 62 % and adjusted free cash flow margin was 53 %.
- Total stock-based compensation was $ 318,889 for the three months ended September 30, 2026, compared with $ 172,318 for the three months ended September 30, 2025.
Concerns
- The majority of contracts are subject to termination provisions, including for convenience, and there can be no guarantee that contracts are not terminated or that contract options will be exercised.
- Remaining deal value may exclude all or some portion of certain commercial contracts based on ongoing assessments of customers’ financial condition and other revenue-recognition criteria.
- The company cites long and unpredictable sales cycles, potential quarterly fluctuations, seasonality, customer retention, macroeconomic and geopolitical events, and artificial-intelligence-related issues among risks.
What to watch
- Conversion of $2.918 billion of closed total contract value into revenue.
- Progress toward full-year U.S. commercial revenue of in excess of $3.559 billion.
- Delivery against Q4 2026 revenue guidance of between $2.649 - $2.653 billion.
- Delivery against Q4 2026 adjusted income from operations guidance of between $1.640 - $1.644 billion.
- Whether U.S. commercial revenue continues to exceed U.S. government revenue.
Balance sheet and cash flow
- Cash, cash equivalents, and U.S. Treasury securities of $10.4 billion.
- Cash and cash equivalents were $ 3,619,414 as of September 30, 2026, compared with $ 1,423,796 as of December 31, 2025.
- Marketable securities were $ 6,942,117 as of September 30, 2026, compared with $ 5,753,247 as of December 31, 2025.
- Accounts receivable, net were $ 1,883,498 as of September 30, 2026, compared with $ 1,042,065 as of December 31, 2025.
- Total assets were $ 13,412,976 as of September 30, 2026, compared with $ 8,900,392 as of December 31, 2025.
- Total liabilities were $ 2,067,876 as of September 30, 2026, compared with $ 1,412,381 as of December 31, 2025.
- Total equity was $ 11,345,100 as of September 30, 2026, compared with $ 7,488,011 as of December 31, 2025.
- Nine-month purchases of property and equipment were $ 29,969, compared with $ 20,610.
- Nine-month net cash used in investing activities was $ 1,138,605, compared with $ 1,825,720.
- Nine-month net increase in cash, cash equivalents, and restricted cash was $ 2,201,392, compared with a net decrease of $ 475,110.
- Cash, cash equivalents, and restricted cash at the end of the nine-month period were $ 3,652,817, compared with $ 1,644,826.
Analysis
Palantir reported a sharp acceleration in scale during Q3 2026. Revenue reached $2.313 billion, up 96% year-over-year and 20% quarter-over-quarter, while U.S. revenue reached $1.937 billion, up 119% year-over-year and 23% quarter-over-quarter. U.S. commercial revenue grew 148% year-over-year and 29% quarter-over-quarter to $984 million, exceeding U.S. government revenue of $953 million for the first time.
Profitability expanded alongside growth. GAAP income from operations was $1.085 billion at a 47% margin, and adjusted income from operations was $1.427 billion at a 62% margin. GAAP net income attributable to common stockholders was $1.128 billion, while diluted GAAP EPS and adjusted diluted EPS were both $0.44. The company reported a Rule of 40 score of 158%.
Cash generation was also substantial. Q3 cash from operations was $1.205 billion, and adjusted free cash flow was $1.216 billion at a 53% margin. Cash, cash equivalents, and U.S. Treasury securities totaled $10.4 billion. Nine-month operating cash flow was $3.320 billion, while nine-month purchases of property and equipment were $29.969 million.
Commercial deal activity and contracted value remain key operating indicators. The company closed 212 deals of at least $1 million and closed $2.918 billion of total contract value, up 6% year-over-year. U.S. commercial total contract value was $1.463 billion, up 11% year-over-year, while U.S. commercial remaining deal value was $6.517 billion, up 79% year-over-year and 4% quarter-over-quarter.
Management raised its full-year 2026 revenue guidance to between $8.530 - $8.534 billion and guided to U.S. commercial revenue in excess of $3.559 billion. It also raised adjusted income from operations guidance to between $5.245 - $5.249 billion and adjusted free cash flow guidance to between $4.8 - $5.0 billion. Q4 guidance calls for revenue of between $2.649 - $2.653 billion and adjusted income from operations of between $1.640 - $1.644 billion.
Management, verbatim
Witness our third quarter results: overall revenue soared 96% year-over-year, U.S. commercial revenue grew 148% year-over-year and 29% sequentially, and aggregate U.S. revenue grew 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.
Alex Karp, Co-Founder and Chief Executive Officer of Palantir Technologies
Not in the filing
stated, not guessed- Prior-quarter values for the reported financial statement line items other than the explicitly disclosed sequential growth metrics.
- GAAP gross margin.
- Q4 2026 gross margin guidance.
- Q4 2026 operating expenses guidance.
- Q4 2026 tax rate guidance.
- Full-year 2026 gross margin guidance.
- Full-year 2026 operating expenses guidance.
- Full-year 2026 tax rate guidance.
- Debt balance.
- Share repurchases.
- Dividends.
- Previous-release outlook for comparison with actual results.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Palantir's Q3 2026 earnings were disclosed via a Form 8‑K filing, detailing revenue, margins, and forward guidance.
Ticker impact
Palantir reported Q3 2026 results with 96% revenue growth YoY and raised FY 2026 revenue guidance to 91% YoY growth.
likely upward pressure as market prices in the raised guidance
The company issued guidance that exceeds prior expectations, indicating higher future cash flows and profitability.
Market effects
AI and data analytics sector may see renewed investor interest.
U.S. tech stocks could benefit from Palantir's strong performance.
Highlights growing demand for sovereign AI solutions worldwide.
Counterpoint
Some investors may question sustainability of such high growth rates.
Key entities
- companyPalantir Technologies Inc.
U.S. AI and data analytics firm reporting Q3 2026 results.
