Palantir stock gains commercial lead as outlook rises

Palantir Technologies reported a powerful third quarter on Monday, November 2, after the software company crossed a major revenue milestone and raised its 2026 outlook. In its SEC-filed earnings release, Palantir said revenue for the quarter ended September 30 rose 96 percent year over year to 2.313 billion US dollars.

Growth broadened across the business. U.S. commercial revenue increased 148 percent year over year to 984 million US dollars, while U.S. government revenue rose 96 percent to 953 million US dollars. Commercial sales therefore exceeded government sales in the United States for the first time in Palantir’s history. Total U.S. revenue reached 1.937 billion US dollars, up 119 percent from the prior-year quarter.

Commercial momentum drives outlook

The results also showed stronger contract activity. Palantir closed total contract value of 2.918 billion US dollars, up 6 percent year over year. U.S. commercial contract value rose 11 percent to 1.463 billion US dollars, while remaining deal value in that market climbed 79 percent to 6.517 billion US dollars.

Profitability remained high alongside the expansion. GAAP net income attributable to common stockholders reached 1.128 billion US dollars, compared with 475.6 million US dollars a year earlier. Diluted GAAP earnings per share and adjusted earnings per share were both 0.44 US dollars. Adjusted operating income rose to 1.427 billion US dollars, producing a 62 percent margin, while adjusted free cash flow reached 1.216 billion US dollars.

Chief Executive Alex Karp linked the performance to accelerating demand for Palantir’s software across government and commercial institutions. He described the company’s Sovereign AI offering as a central part of its current market opportunity. The release also highlighted Foundry, Ontology and the Artificial Intelligence Platform as components of the company’s product strategy.

Raised targets set a higher bar

For the fourth quarter, management expects revenue between 2.649 billion and 2.653 billion US dollars and adjusted operating income between 1.640 billion and 1.644 billion US dollars. For the full year, Palantir raised its revenue forecast to between 8.530 billion and 8.534 billion US dollars and expects U.S. commercial revenue above 3.559 billion US dollars. Adjusted free cash flow is forecast at 4.8 billion to 5.0 billion US dollars.

The stronger forecast raises the execution bar for Palantir. Investors will focus on whether commercial demand can continue to scale without eroding margins and whether large contract volumes convert into recognized revenue. The company’s heavy exposure to artificial intelligence spending remains a growth advantage, but also leaves the valuation sensitive to expectations for future growth.

The real-time quote of Palantir stock traded at 148.32 euros on Lang & Schwarz at 14:30 CET on Wednesday, November 4.

The S&P 500 remains the relevant broad market reference for U.S.-listed technology shares.

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