Palantir Technologies has reported a near-doubling of revenue in the third quarter, as demand for its artificial intelligence software from companies as well as governments continued to accelerate.
Revenue for the three months to 30 September rose about 96% from a year earlier to $2.31 billion, above analysts’ average estimate of $2.18 billion, according to data compiled by LSEG. It was the second consecutive quarter of growth of around 90% or more, and the first quarter in which revenue passed $2 billion.
The most striking shift came inside the United States. US commercial revenue rose 148% to $984 million, edging ahead of US government revenue of $953 million, which itself grew 96%. Chief executive Alex Karp told shareholders the company had “essentially doubled” its entire business in a year, and described the commercial milestone as a first for Palantir.
Palantir built its reputation on government and defence work, including the Maven Smart System used by NATO’s military headquarters and several European armed forces. Its software pulls together data from many different sources so clients can analyse it and run AI models while keeping sensitive information under their own control — a pitch that has proved popular with companies seeking what executives call “sovereign AI” deployments.
The company also raised its outlook. It now expects full-year 2026 revenue of between $8.530 billion and $8.534 billion, up from a previous range of $8.150 billion to $8.158 billion, and forecast fourth-quarter revenue of $2.649 billion to $2.653 billion, above analysts’ average estimate of $2.46 billion. Palantir said it had 1,090 customers over the trailing 12 months to 30 September, of which 904 were commercial.
There was a note of caution beneath the headline growth. Growth in US commercial total contract value — the potential lifetime value of signed contracts — slowed to 11% year on year, from more than 153% in the previous quarter, and analysts at William Blair said some investors may be disappointed by the bookings figures. Palantir said it had signed multiple eight-figure deals in the quarter that were shorter in duration than usual, as customers moved quickly to adopt its tools.
The results land at a moment of intense scrutiny of AI spending, with investors questioning whether heavy investment in data centres and software will pay off quickly enough. Palantir’s quarter suggests demand for applied AI software remains strong, even as the market debates valuations across the sector.
Sources: Reuters, “Palantir tops third-quarter revenue estimates on strong AI software demand” (https://www.reuters.com/technology/palantir-tops-third-quarter-revenue-estimates-strong-ai-software-demand-2026-11-02/) and “Palantir forecasts strong quarterly revenue on AI demand” (https://srnnews.com/palantir-expects-quarterly-revenue-above-estimates-on-strong-ai-demand/).
