On Nov. 2, 2026, after hours, Palantir Technologies PLTR delivered a strong third-quarter performance, beating Zacks Consensus Estimates revenue and earnings estimates, as demand for its artificial intelligence (AI) solutions continued to accelerate. The company also raised its full-year revenue forecast, thanks to rapid growth in its U.S. commercial business.
Shares were, however, volatile in after-hours trading, falling about 5% (at the time writing) despite the upbeat results.
Revenue Nearly Doubles, Beating Estimates
Palantir reported third-quarter revenue of $2.31 billion, up 96% year over year and ahead of analyst expectations of $2.18 billion. Adjusted earnings came in at 44 cents per share, beating the consensus estimate of 41 cents.
Net income more than doubled to $1.13 billion from approximately $476 million in the year-ago quarter. The biggest highlight was the performance of its U.S. commercial business. Revenues from this segment surged 148% to $984 million, surpassing the U.S. government revenue of $953 million, which grew 96%.
This marked the first time Palantir’s U.S. commercial business generated more revenue than its government segment. Its commercial revenue has also increased more than fivefold over the past two years, per CNBC.
Palantir Raises Full-Year Revenue Guidance
Palantir raised its 2026 revenue forecast to approximately $8.53 billion, above the Zacks Consensus Estimate of $8.21 billion. This implies annual revenue growth of about 91%.
The company also increased its full-year U.S. commercial revenue target to more than $3.56 billion, up from its previous forecast of $3.42 billion.
For the fourth quarter, Palantir expects revenue of approximately $2.65 billion (above the Zacks Consensus Estimate of $2.45 billion), reflecting continued momentum in its business.
AI Adoption Fuels Growth
Palantir’s expanding commercial business highlights growing corporate demand for AI-powered data analytics and decision-making tools.
The company has positioned its software as an infrastructure layer that helps businesses deploy AI in practical applications, rather than simply spending money on AI models.
Palantir’s government business remains another major growth driver. Its Maven Smart System became an official Pentagon program earlier this year, strengthening its role in U.S. military AI initiatives.
Wall Street Remains Mostly Bullish
Despite recent volatility in technology stocks and concerns about AI disrupting traditional software companies, Palantir has continued to report strong business growth.