Palantir Technologies Inc.
PLTR · Nasdaq
Next quarter
Expected to report Feb 1, 2027 — estimated from last year’s reporting date.
Consensus is $0.37 EPS for Dec 2026 across 10 estimates, ranging $0.33 to $0.47.
PLTR Sep 2026
- 0.00%
- -1.65%
- $0.32
- $0.32
- —
- $2.31B
Reported results
- $2.31B
- 83.43%
- $1.08B
- 46.89%
- $1.13B
- $0.44
Highlights
- Revenue acceleration: Q3 revenue reached $2.313 billion, up 96% year over year and 20% sequentially, the fastest growth rates Palantir said it has reported as a public company.
- U.S. commercial milestone: U.S. commercial revenue rose 148% year over year and 29% sequentially to $984 million, exceeding U.S. government revenue of $953 million for the first time.
- Guidance raised: FY2026 revenue guidance increased to $8.530–$8.534 billion, or 91% year-over-year growth; U.S. commercial revenue is now expected to exceed $3.559 billion, growing at least 143%.
- Profitability: GAAP operating income was $1.085 billion, a 47% margin, and net income attributable to common stockholders was $1.128 billion, a 49% margin. Diluted GAAP and adjusted EPS were both $0.44.
- Commercial expansion: Total commercial revenue grew 113% year over year to $1.168 billion. U.S. commercial customer count reached 686, up 29% year over year, while U.S. commercial remaining deal value rose 79% to $6.517 billion.
- Bookings and contracted demand: Palantir closed $2.918 billion of TCV, up 6% year over year, including $1.463 billion of U.S. commercial TCV, up 11%. Total remaining deal value was $13.4 billion, up 55%, and RPO was $4.9 billion, up 88%.
- Cash generation: Cash from operations was $1.205 billion and adjusted free cash flow was $1.216 billion, with margins of 52% and 53%, respectively. Cash, cash equivalents and U.S. Treasury securities totaled $10.4 billion.
- EPS comparison caveat: The supplied expectations line lists consensus and reported EPS of $0.32, implying no surprise, while the earnings release reports $0.44 for both GAAP and adjusted diluted EPS; the supplied figures do not reconcile.
Analysis
Palantir delivered a sharp acceleration in Q3: revenue grew 96% year over year to $2.313 billion and 20% sequentially, versus $1.181 billion a year ago and $1.94 billion in Q2. GAAP operating income rose to $1.085 billion from $393 million a year ago and $912 million last quarter; net income attributable to common stockholders was $1.128 billion, compared with $476 million and $1.06 billion, respectively. The supplied expectations data says EPS was $0.32 against $0.32 consensus, but the release reports diluted GAAP and adjusted EPS of $0.44, so those EPS figures are inconsistent and do not support a comparable surprise calculation.
The defining shift was U.S. commercial demand: revenue reached $984 million, up 148% year over year and 29% sequentially, for the first time surpassing U.S. government revenue. Commercial momentum also showed up in 79% growth in U.S. commercial remaining deal value, although company-wide TCV bookings grew a more modest 6%. Palantir raised FY2026 revenue guidance to $8.530–$8.534 billion, implying 91% growth, and raised U.S. commercial growth guidance to at least 143%. Margins and cash generation remained substantial, with a 47% GAAP operating margin and $1.216 billion of adjusted free cash flow, alongside $319 million of stock-based compensation in the quarter.
U.S. commercial surge
U.S. commercial was the clearest driver of the quarter and a milestone for Palantir: its $984 million of revenue moved ahead of U.S. government revenue for the first time. Management attributed the acceleration to demand for Sovereign AI and faster customer conversion from pilots into larger deployments. It also said some new deals were shorter in duration than usual, with an expectation that contract size and duration may expand as customers adopt more use cases.
- Revenue and customers: U.S. commercial revenue grew 148% year over year and 29% sequentially; the customer count reached 686, up 29% year over year and 5% sequentially.
- Deal pipeline: U.S. commercial TCV was $1.463 billion, up 11% year over year. U.S. commercial remaining deal value reached $6.517 billion, up 79% year over year and 4% sequentially.
- Customer expansion: Trailing 12-month average revenue per U.S. commercial customer increased 88% year over year and 20% sequentially. Across Palantir's top 20 customers, trailing 12-month revenue per customer rose 76% to $146 million.
Government and commercial mix
Growth was broad across the U.S. business, rather than confined to commercial accounts. U.S. government revenue grew 96% year over year and 18% sequentially to $953 million, supported by existing programs and new awards. The Army awarded Palantir a prime agreement to produce eight TITAN systems, while management cited Maven's continued deployment and availability across the services. International commercial growth was far more measured, underscoring how concentrated the acceleration was in the U.S.
- U.S. scale: U.S. revenue totaled $1.937 billion, up 119% year over year and 23% sequentially, equal to 84% of company revenue.
- Segment totals: Commercial revenue was $1.168 billion, up 113% year over year; government revenue was $1.146 billion, up 81%.
- International contrast: International commercial revenue was $184 million, up 21% year over year but only 1% sequentially. International government revenue was $192 million, up 31% year over year and 6% sequentially.
Bookings and visibility
Contract measures pointed to meaningful demand, but did not rise as quickly as revenue. Total TCV bookings increased 6% year over year, while commercial TCV grew 17%; U.S. commercial TCV grew 11%. Management said multiple eight-figure commercial deals were signed on shorter-than-usual durations as customers adopted initial Sovereign AI capabilities. These contract-value measures assume options are exercised and contracts are not terminated, so they are not equivalent to firm revenue commitments.
- Bookings: TCV was $2.918 billion, up 6% year over year; commercial TCV was $1.652 billion, up 17%.
- Backlog indicators: Total remaining deal value was $13.4 billion, up 55% year over year and 2% sequentially. RPO was $4.9 billion, up 88% year over year and flat sequentially.
- Retention: Net dollar retention was 165%, an increase of 800 basis points from Q2.
Margins and cash flow
Profitability expanded alongside rapid growth. GAAP operating income more than doubled year over year, while adjusted operating margin reached 62%. The gap between GAAP and adjusted operating income reflects Palantir's exclusion of stock-based compensation and related employer payroll taxes from its adjusted measure; stock-based compensation alone was $319 million in Q3. Cash generation was strong, with adjusted free cash flow slightly above cash from operations after the company's stated adjustments.
- Operating results: GAAP operating income was $1.085 billion, or 47% of revenue; adjusted operating income was $1.427 billion, or a 62% margin.
- Net income: Net income attributable to common stockholders was $1.128 billion, a 49% margin. Diluted GAAP and adjusted EPS were each $0.44.
- Cash: Cash from operations was $1.205 billion and adjusted free cash flow was $1.216 billion. The company ended the quarter with $10.4 billion of cash, cash equivalents and U.S. Treasury securities.
Raised 2026 outlook
The updated outlook assumes substantial growth continues into Q4 and across the full year. Q4 revenue guidance of $2.649–$2.653 billion implies further sequential growth from Q3. For FY2026, the company raised revenue guidance and its U.S. commercial target, and also lifted adjusted operating income and adjusted free cash flow guidance. Palantir continued to expect GAAP operating income and net income in every quarter of 2026.
- Q4 2026: Revenue of $2.649–$2.653 billion and adjusted operating income of $1.640–$1.644 billion.
- FY2026 revenue: $8.530–$8.534 billion, representing 91% year-over-year growth; management said the revenue midpoint was raised by nine percentage points of growth versus the prior quarter's outlook.
- FY2026 U.S. commercial: Revenue expected to exceed $3.559 billion, or at least 143% growth year over year.
- FY2026 profitability and cash: Adjusted operating income guidance is $5.245–$5.249 billion and adjusted free cash flow guidance is $4.8–$5.0 billion.
