Palantir reports $2.3 billion in third-quarter revenue, up 96%

Palantir reported third-quarter revenue of $2.3 billion, up 96% from a year earlier, according to Fortune. The Palantir Q3 revenue 2026 result came in above the company’s prior outlook and the analyst estimate cited by Fortune, as investors watched whether corporate demand for its AI software was keeping pace with its rapid growth.

Fortune reported that Palantir had forecast quarterly revenue of $2.16 billion to $2.164 billion. The reported total was about $136 million above the top of that range and roughly $120 million above the $2.18 billion analyst expectation cited by the publication.

Palantir reported adjusted earnings per share and GAAP earnings per share of 44 cents, Fortune said. Analysts had expected adjusted earnings of 41 cents per share, according to the report. Shares rose about 1.5% in after-hours trading immediately after the figures were released, Fortune reported.

Why was Palantir’s U.S. commercial revenue closely watched?

U.S. commercial revenue reached $984 million, a 148% increase from $397 million a year earlier, according to Fortune. That put the segment $31 million ahead of U.S. government revenue, which rose 96% to $953 million from $486 million; Fortune said it was the first quarter in which U.S. commercial revenue exceeded the U.S. government figure.

The comparison is a measure of sales to companies versus sales to U.S. government customers. Investors have focused on the commercial figure as an indication of whether businesses are buying the company’s AI software, Fortune reported.

Contract values also increased, although at a slower rate than revenue. Total contract value rose 6% to $2.9 billion, while U.S. commercial contract value grew 11% to $1.5 billion, according to Fortune.

What is Palantir forecasting next?

For the next quarter, Palantir forecast revenue of $2.64 billion to $2.65 billion, which Fortune described as about 88% growth at the midpoint. The cited analyst expectation was about $2.46 billion. Those are company forecasts rather than reported results.

Palantir also raised its full-year revenue forecast to $8.53 billion to $8.534 billion, from a previous outlook of as much as $8.2 billion, Fortune reported. The new range implies about 91% year-over-year growth, according to the publication.

The results arrived after a selloff in some technology shares amid concerns that spending on AI may be running ahead of investor returns, Fortune said. Chief Executive Alex Karp called the quarter’s performance extraordinary in a letter to investors and argued that AI would reshape industries; those assessments were his views, not independently established outcomes.

This story draws on original reporting from Fortune.