Palantir Q3 Earnings: U.S. Commercial Revenue Surpasses Government for First Time; Total Revenue Grows 96% YoY
Palantir reported 96% year-over-year total revenue growth in Q3, with U.S. commercial revenue exceeding U.S. government revenue for the first time in company history.
U.S. data analytics software firm Palantir Technologies Inc. (Nasdaq: PLTR) released its third-quarter financial results on November 2, 2026, marking a historic shift in its business structure. In this quarter, Palantir's U.S. commercial revenue reached $984 million, growing 148% year-over-year and 29% sequentially, while U.S. government revenue stood at $953 million. This represents the first time in the company's history that U.S. commercial revenue has surpassed U.S. government revenue.
Overall financial performance was equally robust. Total revenue for the quarter was $2.313 billion, up 96% year-over-year and 20% quarter-over-quarter, crossing the $2 billion threshold for the first time in a single quarter. Adjusted operating margin was 62%, and GAAP earnings per share were $0.44. CEO Alex Karp emphasized in the statement that the "Sovereign AI" movement is forcing rapid differentiation between institutions, with Palantir's product suite (including Foundry, Ontology, and AIP) driving a self-improvement loop through this demand.
Based on the strong Q3 performance, Palantir significantly raised its fiscal year 2026 guidance. The company increased its full-year revenue expectation to between $8.530 billion and $8.534 billion, representing approximately 91% year-over-year growth. Additionally, U.S. commercial revenue guidance was raised to over $3.559 billion, implying a growth rate of at least 143%. This guidance substantially exceeds market consensus, reflecting management's confidence in the pace of AI-driven commercial adoption.