Palantir posts record 96% YoY revenue growth as investors remain cautious
Palantir’s third‑quarter revenue jumped 96% year over year to $2.3 billion, yet its stock wobbled after the release.
Revenue surge and new records
Palantir Technologies announced that third‑quarter revenue climbed to $2.3 billion, a 96% increase from the same quarter a year earlier. The growth rate eclipses the 63% rise recorded in the prior year and marks the “highest‑ever” year‑over‑year growth rate, according to chief financial officer David Glazer. Glazer also highlighted a 20% sequential revenue increase, the strongest ever for the firm.
Milestones and forecasts
The quarter also saw Palantir cross the $2 billion revenue threshold for the first time. In response, the company raised its full‑year revenue forecast to a range of $8.53 billion to $8.534 billion, roughly 91% growth from the previous year and up from an earlier high of $8.2 billion.
For the current quarter, Palantir projects revenue of $2.64 billion to $2.65 billion, about 88% growth at the midpoint, outpacing analysts’ expectation of $2.46 billion. Fiscal‑year 2026 guidance was also lifted, with U.S. commercial revenue now expected to grow 143% year over year.
Earnings details
Adjusted and GAAP earnings per share both came in at 44 cents for the quarter. By comparison, adjusted EPS was 21 cents and GAAP EPS 18 cents in the same quarter of 2025. Analysts had forecast adjusted earnings of 41 cents per share.
CEO’s commentary
CEO Alex Karp described the results as “extraordinary” and called the 96% growth “absolutely striking.” He warned that “every industry in the world—from banks to insurers to hospitals and even once‑storied law firms—will either be remade or set briskly aside.” Karp also claimed that Palantir’s earnings calls have become “the focal point of tech, society, and general trends” and that they are “by far the most‑watched earnings calls in the world.”
Market reaction
In after‑hours trading, Palantir shares initially rose about 1.5% following the release, then fell 3.6% later in the session. The movement occurred against a backdrop of a broader tech slump, including Alphabet’s worst one‑day drop in its 22‑year history and a 29% decline in Intel’s stock the previous week.
Segment performance
U.S. commercial revenue surged 148% to $984 million, overtaking U.S. government revenue for the first time; government revenue grew 96% to $953 million. Total contract value rose 6% to $2.9 billion, while U.S. commercial contract value increased 11% to $1.5 billion.
Outlook amid AI spending concerns
The results arrived after a “bloodbath” in certain tech stocks and serve as a temperature check on the AI trade, which S&P Global estimates will approach $2 trillion in two years. While Palantir’s numbers are strong, investors appear to keep a “gimlet eye” on the sustainability of AI‑driven revenue growth.
