Palantir Q3 revenue jumps 96% as U.S. commercial revenue overtakes government for first time

Strong financial performance drives guidance raise

Palantir Technologies Inc. reported Q3 revenue of $2.313 billion, a 96% increase year-over-year, surpassing analyst expectations of $2.18 billion. Adjusted earnings per share rose to 44 cents, up from 21 cents in the same quarter last year. The company’s net income more than doubled to $1.128 billion, with a net margin of 49%.

The company raised its full-year revenue guidance for the third time in 2026, now expecting revenue between $8.530 billion and $8.534 billion, up from a previous forecast of $8.150 billion to $8.158 billion. Adjusted operating income for 2026 is now projected at $5.245 billion to $5.249 billion, while adjusted free cash flow is forecast at $4.8 billion to $5 billion.

U.S. commercial revenue surpasses government revenue

For the first time in Palantir’s history, U.S. commercial revenue overtook government revenue, reaching $984 million—a 148% year-over-year increase and a 29% rise from the previous quarter. Total U.S. revenue climbed to $1.937 billion, up 119% year-over-year, while U.S. government revenue grew 96% to $953 million.

The shift reflects Palantir’s expanding footprint in the commercial sector, as the company closed 212 deals worth at least $1 million in Q3, including 64 deals valued at $10 million or more. U.S. commercial remaining deal value surged 79% year-over-year to $6.517 billion.

Market confidence and future outlook

Palantir’s Q4 revenue is projected to reach $2.649 billion to $2.653 billion, exceeding analyst forecasts of $2.46 billion. Adjusted operating income for the quarter is expected to range between $1.640 billion and $1.644 billion.

The company’s Rule of 40 score, a measure of growth and profitability, hit 158%, underscoring its ability to balance rapid expansion with strong margins. Palantir ended September with $10.4 billion in cash, cash equivalents, and U.S. Treasury securities, providing a robust financial cushion for future initiatives.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

Palantir’s latest earnings report signals a pivotal moment for the company, as it demonstrates its ability to scale beyond its traditional government contracting roots into the commercial sector. The 96% year-over-year revenue growth and the shift in revenue mix—with U.S. commercial revenue now leading—reflect broader trends in enterprise AI and big data adoption. For founders and operators in the B2B tech space, Palantir’s success highlights the growing demand for sophisticated data analytics and AI-driven solutions, particularly in industries where decision-making relies on large-scale data integration. The company’s ability to close high-value deals ($10 million+) at scale also underscores the commercial viability of AI platforms that can demonstrate clear ROI, a lesson for startups targeting enterprise customers.

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