Palantir reported third quarter 2026 results on November 2, 2026, with revenue of $2.313 billion, up 96 percent from a year earlier and above $2 billion in a single quarter for the first time. For the first time in the company's history, its US commercial revenue, at $984 million, was larger than its US government revenue of $953 million.

The numbers behind the quarter

Total revenue of $2.313 billion grew 96 percent year over year. US revenue, the company's fastest growing region, rose 119 percent to $1.937 billion. On the bottom line Palantir reported GAAP net income of $1.128 billion attributable to common stockholders, with both GAAP and adjusted diluted earnings per share of $0.44.

Two efficiency measures the company leans on also moved higher. Adjusted operating margin was 62 percent, and its Rule of 40 score, which adds revenue growth to profit margin and is considered healthy for a software company above 40, reached 158 percent. For a plain walk through of the revenue, earnings and guidance lines in any such report, see our guide on how to read a company earnings report.

What Palantir actually sells

Palantir sells software platforms that pull an organization's scattered data into one place and let staff who are not programmers ask questions of it. Its original products, Gotham and Foundry, serve government agencies and large enterprises. More recently its Artificial Intelligence Platform, known as AIP, lets customers plug large language models into their own operations with controls on what the models can see and do, and the company credits AIP for much of the jump in commercial demand. That context matters for reading the numbers: the growth is coming from businesses adopting its artificial intelligence tooling, not only from long running government programs.

US commercial overtakes government

Palantir built its name selling data and analytics software to defense and intelligence agencies. The defining detail of this quarter is that the balance has tipped. US commercial revenue grew 148 percent to $984 million and, for the first time, passed US government revenue, which itself grew 96 percent to $953 million.

"Our U.S. commercial revenue has surpassed our U.S. government revenue for the first time in our company's history," co-founder and chief executive Alex Karp said in the release. The shift matters because a business that depends on government contracts is exposed to budget cycles and procurement delays, while a broader base of corporate customers spreads that risk, even if corporate demand brings its own swings.

Profit and cash

Unlike many fast growing software companies, Palantir is firmly profitable on a reported basis. Alongside the $1.128 billion in GAAP net income, the company generated $1.205 billion in cash from operations and $1.216 billion in adjusted free cash flow during the quarter. That combination of growth and cash generation is unusual at this scale and is a large part of why the company draws so much attention.

One caveat sits beneath the reported profit. Palantir's GAAP net income is real, but the company also issues a large amount of stock based compensation, which rewards employees with shares and does not drain cash the way a salary paid in dollars does. That is part of why its reported cash generation looks as strong as it does, and it is a line analysts watch closely when they judge the quality of the earnings.

It is worth separating the operating result from the stock. The figures describe the business, not what any share is worth, and Palantir has long traded at a rich valuation that assumes strong growth continues. Those are two different questions, and this report speaks to the first.

The guidance Palantir gave

Palantir raised its outlook. It now expects full year 2026 revenue of $8.530 billion to $8.534 billion, which works out to about 91 percent growth, and guided fourth quarter revenue to $2.649 billion to $2.653 billion. It also lifted its forecasts for adjusted operating income and adjusted free cash flow for the year.

Raised guidance is the company telling investors it sees demand holding up, reported as its own expectation rather than a promise. One number to keep in view is contract value. Coverage of the quarter noted that closed total contract value grew far more slowly than headline revenue, a reminder to watch the pipeline behind the reported sales. For how this fits the wider boom in artificial intelligence spending, see our coverage of Amazon's latest cloud quarter.

What to watch

The first thing to watch is whether US commercial growth holds near triple digits, because that is the engine that pushed the business past its government roots this quarter. The second is the gap between revenue growth and new contract signings, since revenue can run ahead of fresh bookings for a time before the two reconnect. The third is margins, as the company is spending to expand its commercial salesforce while still reporting high profitability. For readers, the signal worth remembering is simple: the company that was once shorthand for government software reported more commercial than government revenue for the first time, and said it expects the full year to finish about 91 percent larger than the last.

The quarter was a milestone for how Palantir describes itself: no longer mainly a government contractor, but a company whose largest single source of US revenue is now ordinary businesses. The figures here were reported by Palantir and checked against its earnings release and its Form 8-K filed with the Securities and Exchange Commission for the quarter ended September 30, 2026.