Palantir nearly doubled Q3 revenue, with US commercial sales overtaking government revenue and profitability adding another dimension to the growth story. For the quarter ended Sep 30, 2026: • Revenue: $2.313B, up 96% YoY and 20% QoQ • US commercial revenue: $984M, up 148% YoY • US government revenue: $953M, up 96% YoY • GAAP operating income: $1.085B, with a 47% margin US commercial revenue surpassed US government revenue for the first time. Both grew strongly, making this a shift in the business mix rather than evidence of shrinking government demand. Results also beat expectations. Adjusted EPS was $0.44 versus the $0.41 LSEG estimate, while revenue exceeded the $2.18B forecast. Net income reached about $1.13B, compared with $476M a year earlier. Contract activity presents a more measured picture: • Total contract value closed: $2.918B, up 6% YoY • US commercial TCV: $1.463B, up 11% YoY • US commercial remaining deal value: $6.517B, up 79% YoY and 4% QoQ Revenue and TCV measure different activity: revenue recognized during the quarter versus the potential lifetime value of contracts closed. The growth gap is worth monitoring, but does not by itself establish a slowdown. Remaining deal value is also not revenue already earned. Management raised its outlook again, projecting about $2.65B in Q4 revenue and $8.53B for full-year 2026. US commercial revenue is expected to exceed $3.56B for the year. Shares nevertheless dipped about 3% in extended trading after the release. The reaction highlights the distinction between delivering strong results and meeting the expectations embedded in a stock's valuation. The next test is sustaining commercial expansion while replenishing the contract pipeline. Revenue growth, operating margins and deal activity together offer a fuller view of whether AI demand is translating into durable business performance. #PalantirQ3Growth96%
