Palantir's US commercial revenue overtook its US government revenue for the first time in the third quarter of 2026, after sales to American companies grew 148% year over year. Palantir reported Monday that US commercial revenue reached $984 million against $953 million from the US government, and total revenue rose 96% to $2.31 billion.
It was Palantir's first quarter above $2 billion in revenue. The result beat the $2.18 billion analysts expected, according to LSEG estimates, and adjusted earnings of 44 cents a share topped the 41-cent consensus. Net income more than doubled to $1.13 billion from $476 million a year earlier.
Deal volume grew with the top line. Palantir closed 212 deals worth at least $1 million in the quarter, including 107 above $5 million and 64 worth $10 million or more. The company ended September with $10.4 billion in cash and US Treasury securities.
Key facts
- 01Palantir's Q3 2026 revenue rose 96% year over year to $2.31B, its first quarter above $2B.
- 02US commercial revenue grew 148% to $984M, passing US government revenue ($953M, up 96%) for the first time.
- 03Net income more than doubled to $1.13B; adjusted EPS of 44 cents beat the 41-cent estimate.
- 04Palantir closed 212 deals worth at least $1M in the quarter, including 64 worth $10M or more.
- 05Full-year 2026 revenue guidance rose to $8.530B–$8.534B, about 91% growth; Q4 is guided to about $2.65B.
CEO Alex Karp described corporate demand for Palantir's sovereign AI offerings as "extraordinary and ravenous" in his shareholder letter. In an interview after the release, he made a broader claim about the results.
“I don't believe anyone's had consistent results like this in the history of software AI, ever”— Alex Karp, Palantir CEO
The government business did not slow to make room for the crossover. US government revenue grew 96% in the quarter, the same rate as the company overall, while the commercial side grew faster still.
Shares closed Monday at $178.34, down 3.1% in regular trading, and were volatile after hours following the report. Investors have weighed Palantir's valuation, rising competition and tough comparisons against strong earlier quarters, and the stock is down about 5% for the year.
Palantir raised its full-year 2026 revenue guidance to between $8.530 billion and $8.534 billion, about 91% growth and above the roughly $8.2 billion analysts had expected on average.
Palantir now expects full-year US commercial revenue to exceed $3.559 billion, growth of at least 143%, up from a $3.42 billion forecast three months earlier. For the fourth quarter, the company guided to revenue of about $2.65 billion.
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