Palantir Technologies said Monday, November 2, that third-quarter revenue climbed 96% from a year earlier to approximately $2.31 billion, beating analysts' expectations as demand for artificial-intelligence software continued to accelerate.
The result was above the roughly $2.18 billion forecast from analysts surveyed by LSEG. The company also predicted fourth-quarter revenue between $2.649 billion and $2.653 billion, ahead of the approximately $2.46 billion Wall Street estimate cited by Reuters.
Palantir raised its 2026 annual revenue projection to a range of $8.530 billion to $8.534 billion. Its previous forecast called for $8.150 billion to $8.158 billion. The increased outlook indicates that management expects demand to remain strong into the end of the year.
U.S. commercial revenue reached about $984 million in the third quarter, according to MarketWatch reporting, narrowly exceeding the approximately $953 million generated by U.S. government clients. Commercial revenue grew 148% from a year earlier. The milestone highlights a change in the customer mix for a company long associated with defense and intelligence contracts.
Palantir sells software that helps organizations combine large sets of information and use AI systems in operational decisions. Its growth has been supported by companies moving from limited AI pilots into wider deployments, while government agencies have also expanded their use of data-analysis tools.
MarketWatch reported adjusted earnings of 44 cents per share, also above expectations. Reuters said the stock traded higher in volatile after-hours dealings immediately following the announcement.
The results offer a fresh test of investors' appetite for AI companies. The sector has recently faced criticism over high valuations and whether businesses can earn enough on their investment in large-scale AI systems. Palantir's rapid revenue growth is one measure of demand, but it does not remove the possibility of stock-market volatility.
Sources: - Reuters, Palantir fourth-quarter forecast and third-quarter results, Nov. 2 - MarketWatch, Palantir third-quarter report, Nov. 2