Q3 FY2026
Filed Nov 2, 2026Palantir 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.