Palantir’s U.S. Commercial Sales Pass Government for First Time, Up 148%

Palantir Technologies’ U.S. commercial revenue overtook its U.S. government revenue for the first time in the third quarter. Commercial sales jumped 148% from a year earlier to $984 million, against $953 million from U.S. government customers. The figures come from Palantir’s Q3 2026 earnings release, published Monday, Nov. 2. Total revenue rose 96% to $2.313 billion, the first time the data-analytics and AI software company has passed $2 billion in a quarter.

The quarter ran through Sept. 30. Palantir also raised its full-year 2026 revenue forecast to $8.530 billion–$8.534 billion. It now expects U.S. commercial revenue of more than $3.559 billion, growth of at least 143%.

Palantir Q3 2026 earnings by the numbers

Revenue nearly doubled from $1.181 billion a year earlier. Net income attributable to common stockholders rose to $1.128 billion from $475.6 million, an increase of about 137% (TBR calculation from Palantir’s statement of operations). Adjusted income from operations, which excludes stock-based compensation, was $1.427 billion, a 62% margin. GAAP operating income was $1.085 billion, a 47% margin. Earnings were 44 cents per diluted share on both a GAAP and adjusted basis.

The results beat Wall Street forecasts. Analysts surveyed by LSEG expected 41 cents a share in adjusted earnings and $2.18 billion in revenue, CNBC reported. Even so, shares dipped about 3% in extended trading that evening.

U.S. revenue made up about 84% of the total (TBR calculation: $1.937 billion of $2.313 billion), leaving roughly $376 million from international customers. Palantir closed 212 deals worth at least $1 million, 107 worth at least $5 million and 64 worth at least $10 million. It ended the quarter with $10.4 billion in cash, cash equivalents and U.S. Treasury securities. On the earnings call, Chief Financial Officer David Glazer said the company’s U.S. commercial customer count rose 29% to 686 and net dollar retention reached 165%. U.S. commercial revenue was $397 million a year earlier, he said, so it grew by $587 million in one year.

The slower-growing number

One figure grew far more slowly than revenue: total contract value, or TCV. New deals signed in the quarter totaled $2.918 billion in potential lifetime value, up just 6% from a year earlier. U.S. commercial TCV rose 11% to $1.463 billion. Remaining deal value with U.S. commercial customers, which measures contracted work not yet booked, rose 79% to $6.517 billion. Palantir cautions in its definitions that most contracts can be terminated for convenience and that customers may not exercise every option.

What Karp said

CEO Alex Karp tied the results to what he called a “Sovereign AI movement.” “The Sovereign AI movement is imposing the most dramatic dichotomy between haves and have nots that I have witnessed in 30 years of business,” he said in the release. He told CNBC, “I don’t believe anyone’s had consistent results like this in the history of software AI, ever.” CNBC also reported that Karp reiterated his recent call to nationalize AI labs, calling it the “only realistic way” to manage liability.

What’s next

For the fourth quarter, Palantir guided to revenue of $2.649 billion–$2.653 billion and adjusted operating income of $1.640 billion–$1.644 billion. It also raised its full-year adjusted free cash flow forecast to $4.8 billion–$5.0 billion. For how Palantir’s military work fits into its business, see our earlier Palantir Warp Speed explainer. For the day’s market context, see the Nov. 2 Business Report and our business news coverage.

Sources

• Palantir Investor Relations — Palantir Reports Q3 2026 results, Nov. 2, 2026
• CNBC — Palantir reports booming U.S. commercial revenue growth, topping government for first time, Nov. 2, 2026
• The Motley Fool — Palantir (PLTR) Q3 2026 Earnings Call Transcript, Nov. 2, 2026