Palantir said on 2 November that its US commercial business earned $984 million in the third quarter of 2026, up 148% on a year earlier, and for the first time more than its US government business [1][5]. Total revenue grew 96% to $2.313 billion, and the company raised its full-year forecast [1][2].
At a glance
| Reported | 2 November 2026, third quarter results and earnings call [1] |
|---|---|
| US commercial revenue | $984 million, up 148% year on year and 29% on the quarter [1][5] |
| US government revenue | $953 million, up 96% year on year [1][5] |
| Total revenue | $2.313 billion, up 96% year on year [1] |
| US commercial customers | 686, up 29% year on year [1][4] |
| Deals of $1 million or more | 212 in the quarter, 64 of them worth $10 million or more [2][5] |
The signal
- This is the first quarter in which Palantir's US commercial revenue was larger than its US government revenue, its finance chief said on the call [1].
- US commercial revenue grew 148% while the number of US commercial customers grew 29%, so most of the growth came from customers spending more [1][4].
- Bookings grew far more slowly than revenue: total contract value signed in the quarter rose 6% to $2.918 billion [1][3].
- Palantir now expects full-year 2026 revenue of $8.530 billion to $8.534 billion and US commercial revenue above $3.559 billion [1][5].
- Chief executive Alex Karp said the time from first contact to a pilot or a live system has completely shifted [1].
- Shares closed 3.1% lower at $178.34 on the day of the results, The Next Web reports [2].
What happened
Palantir published its third quarter results on Monday 2 November and discussed them on its earnings call that day [1][2]. Revenue rose 96% to $2.313 billion, its first quarter above $2 billion, against the $2.18 billion analysts had expected, according to LSEG estimates cited by The Next Web [2].
The headline for the company was a crossover. Chief financial officer Dave Glazer called it Palantir's first ever quarter in which US commercial revenue eclipsed US government revenue [1]. US commercial sales reached $984 million, up 148% on a year earlier and 29% on the previous quarter, while US government sales reached $953 million, up 96% [1][5]. Across all countries, commercial revenue was $1.168 billion and government revenue $1.146 billion, MarketBeat's summary of the call reports [4].
The number of US commercial customers rose 29% to 686 [1][4]. Palantir closed 212 deals worth at least $1 million, 107 worth at least $5 million and 64 worth at least $10 million [5]. Total contract value signed in the quarter was $2.918 billion, up 6%, and US commercial contract value was $1.463 billion, up 11% [1][5].
On the call, chief revenue officer Ryan Taylor described customers that expanded after a pilot: an industrial materials company went from a pilot of nearly $3 million to a $29 million annual contract, an athletic brand from $1.6 million to about $21 million, and a home appliance maker from $1 million to $15 million, MarketBeat reports [4]. Palantir raised its full-year revenue forecast to between $8.530 billion and $8.534 billion, about 91% growth [1][2].
By the numbers
| What | Figure | Source |
|---|---|---|
| US commercial revenue, Q3 2026 | $984M | AOL |
| US commercial revenue growth, year on year | 148% | AOL |
| US commercial customers | 686 | AOL |
| Deals worth $1 million or more in the quarter | 212 | TradingKey |
| Growth in total contract value signed | 6% | AOL |
Figures exactly as published.
Timeline
Three months before these results, Palantir's forecast put full-year US commercial revenue at $3.42 billion [2].
Palantir reports third quarter revenue of $2.313 billion, up 96% [1].
US commercial revenue of $984 million passes US government revenue of $953 million for the first time [1][5].
Full-year 2026 guidance is raised to $8.530 billion to $8.534 billion in revenue [1].
Shares close 3.1% lower at $178.34 [2].
“our first ever quarter that U.S. commercial revenue eclipsed U.S. government revenue”
How Palantir describes an expansion
- 1Bootcamp
Customers see the software working on their own problems, which Taylor said speeds adoption [1].
- 2Pilot
A paid start, between $1 million and nearly $3 million in the examples given [4].
- 3Production
Karp said the time from first contact to a pilot or a live system has completely shifted [1].
- 4Expansion
The examples grew into annual contracts of $15 million to $29 million [4].
Why it matters
Watch how the money arrived, not only how much. US commercial revenue grew 148% while the customer count grew 29% [1][4]. By our arithmetic, revenue grew about five times faster than the number of customers, so the growth came mostly from companies that were already buying. The pilot examples point the same way: each started at between $1 million and $3 million and grew to an annual contract of $15 million to $29 million [4].
That changes what a B2B seller of AI software should optimise for. Karp told analysts that customers now arrive already sure their current tools are not working, and that the time from first contact to a pilot or a live system has completely shifted [1]. Taylor said customers who attend Palantir's bootcamps adopt quickly because they see the value in their own work [1]. The lesson for marketers is that a fast, hands-on proof on the buyer's own data is now the sales event, and the material around it has to help the buyer's champion argue for expansion inside the company.
Keep the caution in view. Contract value signed in the quarter grew only 6%, far below revenue growth [1][3]. Remaining deal value is not guaranteed revenue, TradingKey notes [5]. Palantir is one company with an unusual sales model, so its numbers show where enterprise demand is moving, not what every vendor will see.
What to do now
For marketers
- Write one page that shows a buyer what the first 30 days of a pilot with your product look like.
- Publish a short case story of a customer that started small and expanded, with the numbers it agreed to share.
- Give your internal champions a one-page summary they can take to a budget meeting.
- Ask ChatGPT to compare vendors in your category for a company like your best customer, and save the answer.
For software buyers and IT teams
- Agree success measures and expansion pricing before a pilot starts.
- Ask each vendor for a pilot that uses your own data, not a demo dataset.
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What to watch
- Bookings. Whether contract value signed starts to grow closer to revenue growth, after rising 6% this quarter [1][3].
- Fourth quarter. Palantir expects revenue of $2.649 billion to $2.653 billion [1].
- Full-year US commercial. Whether US commercial revenue clears the forecast of more than $3.559 billion [1][5].
- Customer count. Whether new US commercial customers keep growing, or growth keeps coming mainly from larger contracts [1][4].
- Rivals' results. Whether other enterprise AI vendors report the same pattern of small pilots turning into large contracts.
Who is affected
Buyers expand fast after a proof on their own data, so the pilot is the main sales moment [1][4].
Large vendors start small and grow; set expansion terms and success measures before the pilot [4].
Palantir's government revenue still grew 96%, so the public sector is not shrinking for it [1][5].
No direct change; this is one company's results, useful as a signal of how AI is bought [1].
Questions readers ask
Did Palantir's commercial revenue pass government revenue?
Yes, in the US. In the third quarter of 2026, US commercial revenue was $984 million and US government revenue $953 million, a first for Palantir [1][5].
How much did Palantir's US commercial revenue grow in Q3 2026?
It grew 148% year on year and 29% on the previous quarter, to $984 million [1][5].
What was Palantir's total revenue in Q3 2026?
$2.313 billion, up 96% year on year and 20% on the previous quarter [1].
How many US commercial customers does Palantir have?
686 at the end of the third quarter of 2026, up 29% year on year [1][4].
What is Palantir's 2026 revenue forecast?
Between $8.530 billion and $8.534 billion, about 91% growth, with US commercial revenue above $3.559 billion [1][2].
How fast do Palantir pilots turn into contracts?
Palantir did not give a time. It described pilots of $1 million to $3 million that grew into annual contracts of $15 million to $29 million [4].
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Sources
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