Earnings · $PLTR
Palantir's US Commercial Revenue Overtakes Government for First Time as Third-Quarter Sales Jump 96%
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The software maker raised its full-year outlook, but shares slipped in after-hours trading as contract value growth lagged revenue.
By Noris Ortiz ·
Palantir Technologies reported third-quarter results after the close on Monday that showed revenue nearly doubling and a full-year forecast raised again, though the stock traded lower in the extended session as investors weighed slower growth in contract value [1][2].
Revenue for the quarter ended September 30 came to $2.313 billion, up 96% from a year earlier and 20% from the prior quarter, according to the company's release [1]. U.S. commercial revenue rose 148% year over year to $984 million, while U.S. government revenue grew 96% to $953 million. That left commercial sales ahead of government sales in the United States for the first time in the company's history, a milestone Chief Executive Alex Karp highlighted in the release [1].
Profitability was a central part of the report. Adjusted income from operations was $1.427 billion, a 62% margin, while GAAP income from operations was $1.085 billion, a 47% margin. Net income attributable to common stockholders was $1.128 billion, and both GAAP and adjusted diluted earnings were $0.44 per share. Adjusted free cash flow reached $1.216 billion, or 53% of revenue [1].
Against Wall Street expectations, the numbers were comfortably ahead. A 24/7 Wall St. summary put consensus at $0.41 a share in adjusted earnings and $2.18 billion in revenue, meaning the company topped both [2].
The company also lifted its guidance. For the fourth quarter, Palantir expects revenue of $2.649 billion to $2.653 billion and adjusted operating income of $1.640 billion to $1.644 billion. For all of 2026 it now projects revenue of $8.530 billion to $8.534 billion, U.S. commercial revenue above $3.559 billion, which would be growth of at least 143%, adjusted operating income of $5.245 billion to $5.249 billion and adjusted free cash flow of $4.8 billion to $5.0 billion. It said it still expects positive GAAP operating income and net income in each quarter of 2026 [1].
Despite the beat, the shares fell about 3.1% to $178.46 in after-hours trading, according to 24/7 Wall St. [2]. That publication pointed to total contract value, which rose only 6% year over year to $2.92 billion, as a figure investors may scrutinize for the quality of future cash flows, since it grew far more slowly than revenue [2]. Palantir shares had already dipped during the regular session ahead of the report, Reuters said [3].
The result lands on a day when artificial intelligence stocks were under broad pressure. The Nasdaq Composite fell 1.07% on Monday, extending a rough stretch for tech and AI-linked companies after a decline of more than 5% in October, as investors questioned whether spending on AI infrastructure is outrunning near-term cash generation [3][4]. Palantir's report offered a contrasting data point, showing demand for its software among both corporate and government customers.
What to watch next: whether the after-hours reaction holds when regular trading resumes Tuesday, how analysts interpret the gap between revenue growth and contract value growth, and whether the company's guidance for sequential growth in the fourth quarter proves achievable. Broader AI sentiment will also be tested Tuesday, when Advanced Micro Devices reports after the bell [3].
Sources:
[1] Palantir Technologies (press release, as posted by StockTitan), "Palantir Reports Q3 2026 U.S. Comm Revenue Growth of 148% Y/Y and Revenue Growth of 96% Y/Y", November 2, 2026. https://www.stocktitan.net/news/PLTR/palantir-reports-q3-2026-u-s-comm-revenue-growth-of-148-y-y-and-quyw16dj59bm.html
[2] 24/7 Wall St., "Palantir Q3 2026: Commercial Revenue Tops Government for First Time", November 2, 2026. https://247wallst.com/cards/palantir-q3-2026-earnings-pltr-01m6f1kk98agygmzse44h9307q
[3] Reuters (via Virginia Business), "S&P 500 ends down; Apple dips ahead of quarterly report", November 2, 2026. https://virginiabusiness.com/sp-500-lower-apple-dips-quarterly-report-midterm-elections/
[4] Yahoo Finance, "Stock market today: S&P 500 and Nasdaq extend tech sell-off, Dow gains as oil prices plunge", November 2, 2026. https://finance.yahoo.com/markets/live/stock-market-today-monday-november-2-dow-sp-500-nasdaq-091835095.html
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.