4 minBusiness
Palantir Revenue Jumps 96% to $2.3 Billion as US Commercial Sales Surge
Palantir reported a 96% year-over-year rise in quarterly revenue and raised its full-year forecast, despite a sell-off in technology stocks last week.
Palantir Technologies on Monday reported that third-quarter revenue rose 96% year over year to $2.3 billion. The growth significantly exceeded last year's 63% rate and the $1.2 billion in revenue recorded a year earlier. After the report was published, the company's shares rose about 1.5% in after-hours trading.
The company also raised its full-year revenue forecast to a range of $8.53 billion to $8.534 billion, roughly corresponding to 91% growth. A quarter earlier, the upper end of the forecast stood at $8.2 billion. Analysts had expected revenue of $2.18 billion and adjusted earnings of 41 cents per share. Adjusted and GAAP earnings per share were both 44 cents, compared with an adjusted figure of 21 cents and a GAAP figure of 18 cents in the third quarter of 2025.
The results came against the backdrop of a sharp drop in several technology stocks last week, and many investors view Palantir's report as an indicator of the market's attitude toward turning AI software into revenue growth. The company is considered one of the benchmarks on this question. Its report followed Alphabet's record one-day share decline in the 22 years since the company went public. The weak market reaction to last week's reports from Amazon and Intel heightened concerns that AI spending, which S&P Global estimates is approaching $2 trillion over two years, is outpacing returns for investors. According to media reports, Alphabet lost $505 billion in market capitalization after its results were published, and Intel's shares fell about 29%. The Nasdaq Composite index fell more than 1% on Monday and has lost 4% over the last five trading days.
Palantir Chief Executive Alex Karp, in a quarterly letter to investors, described the company's results as extraordinary, writing that calling them such would be an "understatement." He said the 96% growth rate is "absolutely stunning." He also stated that changes would soon affect "every industry in the world, from banks and insurers to hospitals and even once-storied law firms," which will either be rebuilt or pushed aside.
Investors are paying particularly close attention to Palantir's U.S. commercial revenue as a sign that companies, and not only governments, are ready to pay for AI software. This segment grew 148% to $984 million, compared with $397 million a year earlier. For the first time, U.S. commercial revenue surpassed government revenue, which rose 96% to $953 million from $486 million a year ago.
Total contract value grew 6% to $2.9 billion, while U.S. commercial contract value increased 11% to $1.5 billion. For the current quarter, Palantir forecasts revenue in the range of about $2.64 billion to $2.65 billion, which at the midpoint corresponds to growth of about 88%. Analysts had expected about $2.46 billion. The forecast for U.S. commercial revenue in fiscal 2026 was raised to growth of 143%. In the report, the company, valued at roughly $430 billion, also said its results "crush consensus expectations."
Source: fortune.com
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