Tech & AI
Palantir revenue nearly doubles to $2.31bn and guidance rises, yet shares slip
US commercial sales overtook government business for the first time, but investors sold a stock already priced for rapid growth.
HedgeWeekly Tech & AI Desk ·
Palantir Technologies reported third-quarter revenue of $2.313bn, up 96% from $1.181bn a year earlier and about $140m above the $2.17bn analysts expected, according to Investing.com. Adjusted earnings were $0.44 a share against a $0.41 forecast, and net income reached $1.128bn.
For the first time, US commercial revenue, at $984m and up 148%, exceeded US government revenue of $953m, which rose 96%. Revenue outside the US grew about 26% to roughly $376m. The data-analytics and AI software group posted an adjusted operating margin of 62%, up from 51% a year ago, and said 64 deals worth at least $10m closed in the quarter.
Palantir raised full-year 2026 revenue guidance to $8.530bn-$8.534bn, its third increase this year, and lifted adjusted operating income guidance to about $5.25bn. It guided fourth-quarter revenue to $2.649bn-$2.653bn. The shares had already fallen 3.1% to $178.44 in Monday's regular session and dropped a further 3.8% after hours to $171.52, with commentary pointing to a demanding valuation and doubts over how long growth can last.
Why it matters: Palantir is a bellwether for whether companies are paying real money for AI software, and a shift toward commercial customers reduces its reliance on government budgets. A beat-and-raise that still meets selling shows how much is priced in, at a time when markets are questioning AI spending broadly. Watch US commercial contract value and remaining deal value, which signal how durable the acceleration is.