Palantir Nearly Doubles Revenue in Q3 as US Commercial Sales Top Government for First Time

Palantir Technologies posted third-quarter revenue of $2.313 billion, up 96% year over year and above the $2.183 billion Wall Street expected, marking the company's first quarter above $2 billion in revenue and its 13th consecutive quarter of accelerating sales growth. Adjusted earnings per share came in at $0.44, beating the $0.41 estimate, while net income reached $1.134 billion and adjusted operating income hit $1.43 billion, good for a 62% adjusted operating margin and a Rule of 40 score of 158%.

The most striking development inside the results was a historic shift in Palantir's revenue mix: US commercial revenue surged 148% year over year to $984 million, surpassing US government revenue of $953 million for the first time in the company's history. A year earlier those figures were $397 million and $486 million respectively, meaning the commercial business has more than doubled twice over in twelve months. The company closed 212 deals worth at least $1 million, 107 worth at least $5 million, and 64 worth at least $10 million in the quarter, while US commercial remaining deal value stood at $6.52 billion, up 79% year over year.

Palantir raised its full-year 2026 revenue guidance to $8.530 billion to $8.534 billion, implying 91% growth and well above the prior consensus of roughly $8.205 billion. Full-year adjusted income from operations guidance was set at $5.245 billion to $5.249 billion, against an estimate of $4.79 billion, and adjusted free cash flow guidance was raised to $4.80 billion to $5.00 billion. US commercial revenue for the full year is now expected to exceed $3.559 billion, representing growth of at least 143%. For the fourth quarter, Palantir guided revenue of $2.649 billion to $2.653 billion, well ahead of the $2.46 billion consensus. CEO Alex Karp said the company has "essentially doubled our entire business since the same quarter last year" and framed the Sovereign AI movement as forcing every institution into a category of haves or have-nots.

Apple also reported after the close, posting fiscal fourth-quarter revenue of $114.48 billion, up 12% year over year and above the $113.47 billion estimate, in the first earnings report under new CEO John Ternus. EPS of $2.10 beat the $2.00 consensus, though results included a favorable $0.05 impact from tariff refunds and roughly one percentage point of gross margin benefit from the same source. iPhone revenue of $57.58 billion and Mac revenue of $10.79 billion both topped estimates, while iPad at $6.23 billion, Wearables at $8.30 billion, and Greater China at $17.54 billion all missed. Apple shares fell after hours despite the headline beat, with investors focused on a gross margin outlook of 45% to 46% for the fiscal first quarter, below the 46.3% estimate, as higher memory chip costs and Siri AI ramp expenses weigh. The company guided fiscal first-quarter revenue growth of 7% to 10%, ahead of the 6.1% estimate, and Ternus said the December quarter is expected to be Apple's best revenue quarter ever.