Palantir Technologies Inc. — Q3 2026 Earnings Summary

Financial Performance:

• Total revenue grew 96% year-over-year and 20% quarter-over-quarter to $2.313 billion, surpassing $2 billion for the first time.
• U.S. commercial revenue grew 148% year-over-year and 29% quarter-over-quarter to $984 million.
• U.S. government revenue grew 96% year-over-year and 18% quarter-over-quarter to $953 million.
• Aggregate U.S. revenue grew 119% year-over-year and 23% quarter-over-quarter to $1.937 billion.
• GAAP income from operations was $1.085 billion, representing a 47% margin.
• Adjusted income from operations was $1.427 billion, representing a 62% margin.
• GAAP net income was $1.128 billion, representing a 49% margin.
• Cash from operations was $1.205 billion, representing a 52% margin.
• Adjusted free cash flow was $1.216 billion, representing a 53% margin.
• GAAP and Adjusted EPS were both $0.44.
• Rule of 40 score was 158%.
• Cash, cash equivalents, and U.S. Treasury securities totaled $10.4 billion.

Guidance and Future Outlook:

• Q4 2026 revenue guidance raised to between $2.649 billion and $2.653 billion.
• Q4 2026 adjusted income from operations guidance raised to between $1.640 billion and $1.644 billion.
• Full-year 2026 revenue guidance raised to between $8.530 billion and $8.534 billion.
• Full-year 2026 U.S. commercial revenue guidance raised to in excess of $3.559 billion, representing at least 143% growth.
• Full-year 2026 adjusted income from operations guidance raised to between $5.245 billion and $5.249 billion.
• Full-year 2026 adjusted free cash flow guidance raised to between $4.8 billion and $5.0 billion.
• Company expects to report GAAP operating income and net income in each quarter of 2026.

Business Segments and Product Lines:

• U.S. commercial revenue surpassed U.S. government revenue for the first time in company history.
• Closed 212 deals of at least $1 million, 107 deals of at least $5 million, and 64 deals of at least $10 million.
• Total contract value (TCV) closed was $2.918 billion, up 6% year-over-year.
• U.S. commercial TCV closed was $1.463 billion, up 11% year-over-year.
• U.S. commercial remaining deal value (RDV) was $6.517 billion, up 79% year-over-year and 4% quarter-over-quarter.
• Products highlighted include Foundry, Ontology, and AIP with ontologized, fine-tuned open-weight models.

Market and Competitive Landscape:

• Management describes the "Sovereign AI movement" as creating a dramatic dichotomy between institutions that adopt the technology and those that do not.
• The company states that every government and commercial institution is rapidly being forced into one of two categories regarding Sovereign AI adoption.

Risks and Challenges:

• Forward-looking statements note risks including the ability to successfully execute business and growth strategies.
• Risks include the sufficiency of available funds to meet liquidity needs and demand for platforms and services.
• Potential risks involve the long and unpredictable sales cycle, contract termination for convenience provisions, and the complexity of platform implementation.
• Risks include macroeconomic and geopolitical events, fluctuating interest rates, foreign currency fluctuations, and trade relations impacts.
• Specific risks include issues raised by the use of artificial intelligence and potential data breaches.

Management Commentary and Tone:

• CEO Alex Karp stated the Sovereign AI movement imposes the most dramatic dichotomy between haves and have-nots witnessed in 30 years of business.
• Management highlighted that the Sovereign AI moment is purpose-built for Palantir, driving a self-improvement loop that joins workflows with optimal models.
• The tone emphasizes transformational value for both Palantir and partners, noting that "each becomes stronger as the sum becomes more powerful."

Other Key Points:

• The press release includes a live public webcast scheduled for 5:00 PM ET on the announcement date.
• An investor presentation with supplemental financial information and non-GAAP reconciliations is available on the Investor Relations website.
• Stock-based compensation expense included in operating expenses was $318.9 million for the quarter.
• The company defines Total Contract Value (TCV), Annual Contract Value (ACV), and Remaining Deal Value (RDV) with specific assumptions regarding contract options and termination provisions.