Earnings

Palantir's U.S. Commercial Sales Pass Government Revenue For The First Time, And It Raises Its Outlook

Third-quarter revenue rose 96% to $2.313 billion, and the company lifted its 2026 revenue, profit and cash-flow guidance.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

— 2 min read
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Palantir's U.S. Commercial Sales Pass Government Revenue For The First Time, And It Raises Its Outlook

Palantir's U.S. commercial business out-earned its U.S. government business for the first time, with $984 million against $953 million in the third quarter, the company said Monday. Total revenue rose 96% to $2.313 billion, and Palantir raised its full-year forecast.

Commercial overtakes government

Palantir, which sells software that lets organizations combine their data, decisions and operations, said U.S. commercial revenue grew 148% from a year earlier and 29% from the second quarter. U.S. government revenue grew 96% from a year earlier and 18% from the prior quarter.

Total U.S. revenue climbed 119% to $1.937 billion. Overall revenue rose 20% from the second quarter, and quarterly sales topped $2 billion for the first time.

CEO Alex Karp credited what he called the Sovereign AI movement. In his words, it is "imposing the most dramatic dichotomy between haves and have nots that I have witnessed in 30 years of business."

The company closed 212 deals of at least $1 million, 107 of at least $5 million and 64 of at least $10 million. Total contract value closed was $2.918 billion, up 6% from a year earlier, including $1.463 billion in U.S. commercial, up 11%.

Margins above 60% on an adjusted basis

Income from operations was $1.085 billion, a 47% margin, on standard accounting. Adjusted operating income, which excludes stock-based pay and related payroll taxes, was $1.427 billion, a 62% margin, versus 51% a year earlier.

Net income attributable to common stockholders was $1.128 billion, or $0.44 a diluted share. Cash from operations was $1.205 billion, and adjusted free cash flow was $1.216 billion, a 53% margin. Cash and Treasury securities totaled $10.4 billion.

U.S. commercial remaining deal value, the contracted value not yet recognized as revenue, stood at $6.517 billion, up 79% from a year earlier and 4% from the prior quarter.

The raised 2026 outlook

Palantir now expects full-year revenue of $8.530 billion to $8.534 billion. It expects U.S. commercial revenue above $3.559 billion, growth of at least 143%.

Adjusted operating income is guided to $5.245 billion to $5.249 billion, and adjusted free cash flow to $4.8 billion to $5.0 billion. The company still expects standard-accounting operating and net income in every quarter this year.

For the fourth quarter, it guided to revenue of $2.649 billion to $2.653 billion and adjusted operating income of $1.640 billion to $1.644 billion.

Palantir held a webcast on the results at 5:00 p.m. ET Monday.

The fourth-quarter revenue guide of $2.649 billion to $2.653 billion is the next marker for a company that just passed $2 billion in a quarter for the first time.

Sources

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