Palantir Q3 revenue jumps 96% to $2.313B, raises 2026 guidance on explosive U.S. commercial demand

 

Palantir Q3 revenue jumps 96% to $2.313B, raises 2026 guidance on explosive U.S. commercial demand for Sovereign AI platform

• Q3 revenue $2.313B, up 96% YoY and 20% QoQ, showing record acceleration.
• GAAP EPS $0.44; GAAP net income $1.128B, 49% margin, up eightfold since 2024.
• Non-GAAP EPS $0.44 in Q3 2026 grew 110% YoY and beat analyst estimates.
• U.S. commercial revenue $984M, up 148% YoY and 29% QoQ, first to surpass government, driven by explosive Sovereign AI demand.
• Total commercial revenue $1.168B, up 113% YoY; government revenue $1.146B, up 81% YoY.
• International commercial and government growth lags U.S.; international commercial grew only 21% YoY and 1% QoQ.
• Adjusted gross margin 85%; adjusted operating margin 62%; Rule of 40 score 158%, continuing to expand.
• Free cash flow $1.216B, 53% margin; cash balance $10.4B, providing ample strategic flexibility.
• Q4 2026 revenue guided to $2.649–$2.653B, above consensus; adjusted operating income forecast $1.640–$1.644B.
• Full-year 2026 revenue guidance lifted to $8.53–$8.534B, midpoint $8.53B, implying 91% YoY growth, above prior targets and consensus.
• 2026 adjusted operating income guidance raised to about $5.25B in the updated outlook.
• Free cash flow guidance for 2026 boosted to as much as $5B.
• 2026 U.S. commercial revenue guidance raised to 143% YoY, target above $3.559B, well above targets and Wall Street consensus.
• Q3 contract metrics weakened: slower total contract value growth, flat remaining performance obligations, shorter deal durations, signaling cooler forward demand.
• Management extremely confident, calling demand 'insatiable' but highlighting bandwidth constraints, hypergrowth sustainability risks, and dependence on U.S. commercial AI momentum.

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