Palantir Technologies’ third-quarter revenue jumped 96% year over year to $2.3 billion, its fastest growth on record, as US commercial sales surpassed US government revenue for the first time. The company also raised its full-year growth outlook. The results point to expanding enterprise demand and a larger contract pipeline, even as investors continue to scrutinize Palantir’s valuation amid weakness in some AI-linked stocks.
Revenue and earnings beat expectations
For the third quarter of 2026, Palantir reported revenue of $2.3 billion, up 96% from a year earlier and 20% from the previous quarter. Diluted earnings per share rose 144% year over year to $0.44. Both figures topped consensus estimates of $2.2 billion in revenue and $0.41 per share.
US commercial business was a key growth driver. Revenue from the segment, which includes the company’s Artificial Intelligence Platform (AIP), climbed 148% year over year and 29% quarter over quarter to $984 million. US government revenue reached $953 million, up 96% year over year and 18% from the prior quarter. Commercial revenue therefore exceeded government revenue for the first time, marking a further expansion of Palantir’s business among US companies.
Contract pipeline and customer spending expand
Palantir signed $2.92 billion in total contract value (TCV) during the quarter, up 6% year over year. US commercial TCV was $1.46 billion, an 11% increase. Net dollar retention, which tracks spending by existing customers, stood at 165%—meaning those customers spent 65% more than in the year-earlier period.
Remaining deal value (RDV) in the US commercial business rose to $6.52 billion, up 79% year over year and 4% from the previous quarter. The measure covers contract value in progress or awaiting performance and offers an indication of business that could convert in the future; it is not the same as recognized revenue.
Palantir’s Rule of 40 score was 158% for the quarter. The metric combines revenue growth and profit margin and is commonly used to assess software companies’ growth and profitability. Operating cash flow and adjusted free cash flow were both $1.2 billion, with margins of about 53%. Cash and cash equivalents totaled $10.56 billion at quarter-end.
Full-year growth outlook raised to about 91%
Palantir raised its full-year revenue growth forecast to about 91%, up from the 82% outlook given in the previous quarter. Revenue growth also accelerated for a 13th consecutive quarter. The results and higher guidance add evidence of business momentum, though continued growth will depend on the company converting contracts and customers sustaining their spending.
The company’s high valuation has kept the results in focus. Palantir shares closed at $178.34 on November 2, down 3.13% on the day. The price-to-earnings ratio was about 125 times on the basis cited. Valuation measures for high-growth companies do not settle questions about what investors are willing to pay, and the gap between growth and valuation may leave the shares more sensitive to changes in operating performance.
Alex Karp says companies should retain control of data
Chief Executive Alex Karp said companies should not hand their data casually to outside providers, particularly firms offering AI solutions. He argued that data contains a company’s proprietary knowledge, workflows and strategic advantages. Palantir uses hands-on boot camps to show customers how its platform can deliver practical business results and how to measure returns on investment, presenting these demonstrations as one way to encourage adoption.
The quarter brought two notable signals: US commercial revenue exceeded government revenue for the first time, while contract and customer-spending measures also increased. At the same time, Palantir’s valuation remains high, leaving investors focused on whether the company can meet its raised full-year revenue growth outlook.