Palantir Technologies reported third-quarter revenue above Wall Street expectations, supported by strong demand for its artificial intelligence-powered data analytics software from government agencies and commercial customers.
The company’s revenue increased approximately 96% year over year to $2.31 billion in the quarter, exceeding analysts’ average estimate of $2.18 billion, according to LSEG data. This marked the second consecutive quarter in which Palantir recorded revenue growth of around 90%.
The company also issued a stronger forecast for the final quarter of 2026. It expects fourth-quarter revenue to reach between $2.649 billion and $2.653 billion, compared with analysts’ average estimate of $2.46 billion.
Palantir raised its full-year revenue outlook to between $8.530 billion and $8.534 billion, up from its previous forecast of $8.150 billion to $8.158 billion.
A notable development in the latest results was the performance of its US commercial business. Revenue from US commercial customers reached $984 million, surpassing US government revenue of $953 million for the first time in the company’s history.
The growth reflects increased adoption of Palantir’s software by businesses seeking to integrate and analyse information from multiple sources, maintain control over their data and use AI systems to improve operations.
Palantir said it signed several large contracts during the quarter, including multiple eight-figure agreements. Some of these contracts were shorter in duration than usual as customers moved quickly to adopt initial sovereign AI capabilities, which allow organisations to retain control over their data and how AI systems are deployed.
However, the results also showed a slowdown in US commercial total contract value growth. The measure, which represents the potential lifetime value of signed contracts, increased 11% year over year in the third quarter, compared with growth of more than 153% in the previous quarter. The slowdown raised concerns among some investors.
Palantir reported 1,090 customers over the 12 months through September 30, including 904 commercial clients. The company continues to serve government and defence organisations alongside its expanding commercial customer base.
Chief Executive Alex Karp said in a letter to shareholders that the company had effectively doubled its business compared with the same quarter a year earlier.
Despite the stronger revenue and outlook, Palantir shares fell nearly 3% in extended trading as investors assessed the slowdown in commercial contract growth alongside the company’s latest performance.
