The key facts

  • Palantir's Q3 revenue grew 96% year over year to $2.31 billion, surpassing $2 billion for the first time
  • US commercial revenue ($984 million) exceeded government revenue ($953 million) for the first time
  • Total contract value with American companies was $1.46 billion versus a record $2.13 billion the previous quarter

Record results and a shift in revenue structure

Palantir published its third-quarter 2026 report, and the company itself emphasized in the press release that the results 'crushing consensus expectations' — significantly beat analysts' consensus forecasts. Revenue grew 96% year over year to $2.31 billion, surpassing the $2 billion mark for the first time, and came in above the expected $2.18 billion. Adjusted earnings per share were $0.44 versus a forecast of $0.41. The company also raised its full-year revenue guidance. TechCrunch reports on this.

Commercial business overtakes government for the first time

The key structural change: Palantir's commercial revenue in the US exceeded government revenue for the first time in the company's history. Contracts with commercial clients brought in $984 million (up 148% year over year) versus $953 million from US government entities. The company attributes corporate demand to its AI software, which allows running frontier models and fine-tuning open-weight models on customers' own data without handing it over to external AI labs, as well as its practice of 'forward-deployed' engineers who help adapt the product to each customer.

A warning sign: short contracts and declining TCV

Against the backdrop of record revenue, the report shows a less optimistic figure. CEO Alex Karp told analysts that clients are coming on board and deploying the product faster, but signing contracts for shorter terms — with the possibility of significant expansion later. According to him, corporations are willing to quickly try out AI software without the usual bureaucracy, but they have also become more willing to terminate contracts. Notably, the total contract value (TCV) with American companies came to $1.46 billion — a decline from the record $2.13 billion of the previous quarter, which points to a slowdown in corporate sales, as TechCrunch notes. Investors, however, reacted cautiously: the next day the stock traded slightly in the red.

What's next

The company raised its guidance for the US commercial segment: revenue is expected to exceed $3.559 billion, implying growth of at least 143%. The next report will show whether Palantir has established itself as a growing provider of enterprise AI in the US: historically, many enterprises sign their largest technology deals in the final quarter of the year.