Palantir Q3 Revenue Surpasses Expectations As US Commercial Sales Overtake Government Sector
Palantir Technologies reported third-quarter revenue of $2.313 billion on Monday, beating Wall Street consensus estimates of $2.17 billion and raising its full-year revenue outlook. The data software company achieved a 96% year-over-year increase. Adjusted earnings per share reached $0.44, topping the $0.40 consensus estimate. Palantir stock closed down $5.77 at $178.34, but ticked up $2.15 to $180.49 in after-hours trading.
US Commercial Sales Surge Past Government Revenue
Palantir’s U.S. commercial business surpassed its U.S. government sales for the first time in the company’s history during the third quarter. U.S. commercial revenue jumped 148% to $984 million, outpacing U.S. government revenue of $953 million, which grew 96%. CEO Alex Karp told CNBC that the company’s U.S. commercial revenue has more than quintupled over the last two years, adding that the business is succeeding without salespeople. The shift marks a milestone for a company historically recognized for its strength in the government sector, with the Maven Smart System becoming an official Pentagon program earlier this year.
Palantir reports Q3 ‘26 US comm revenue growth of 148% Y/Y and revenue growth of 96% Y/Y; raises FY ’26 revenue guidance to 91% Y/Y growth and US comm revenue guidance to 143% Y/Y, crushing consensus expectations.US comm revenue accelerated to 29% growth Q/Q and was $984… pic.twitter.com/GJByjorwgC
Full-Year Guidance and Wall Street Sentiment
Following the quarterly beat, management raised Palantir’s full-year revenue outlook to a range between $8.530 billion and $8.534 billion, eclipsing analyst estimates of $8.2 billion. The company also lifted its target for full-year U.S. commercial sales to more than $3.559 billion. Market sentiment remains largely positive, with 30 Buy ratings, nine Holds, and two Sells, alongside a consensus price target of $216 per share.
Valuation Pressures and Market Volatility
Palantir shares have experienced volatility, retreating from highs above $213 earlier in the year before finding support near its 100-week simple moving average. The stock jumped roughly 60% in the third quarter alone, though high price-to-sales multiples continue to divide investors. CEO Alex Karp sold $86 million in stock during August through pre-set trading plans tied to routine tax withholding, while reiterating calls to nationalize AI labs to manage liability.
Frequently Asked Questions About Palantir Financials
What drove Palantir’s revenue growth in the third quarter?
Palantir’s revenue reached $2.313 billion due to a 96% year-over-year increase, powered by a 148% surge in U.S. commercial revenue to $984 million.
How do Palantir’s commercial and government segments compare financially?
For the first time ever, U.S. commercial sales surpassed U.S. government sales, generating $984 million compared to the government segment’s $953 million during the third quarter.
What is Palantir’s updated revenue guidance for the full year?
Palantir raised its full-year revenue expectation to between $8.530 billion and $8.534 billion, up from analyst estimates of $8.2 billion.