Palantir Q3 2026 Revenue Tops $2 B as U.S. Commercial Beats Government

Palantir announced Q3 2026 results, posting $2.313 bn in revenue—a 96% year-over-year rise and the first quarter to exceed $2 bn. Shares fell to $172.99 from $178.30 after the release, a move the author attributes to weak bookings.

U.S. commercial revenue surged 148% YoY to $984 m, overtaking U.S. government revenue, which grew 96% YoY to $953 m. The commercial segment added roughly $220 m in the quarter, a gain that represents more than half of the entire segment’s revenue a year ago. The segment now serves 686 customers; $984 m across 686 customers equals about $1.43 m per customer per quarter, or roughly $5.7 m annualized. Net-dollar retention climbed to 165%, up 800 basis points QoQ.

Total contract value (TCV) rose only 6% YoY to $2.918 bn, with U.S. commercial TCV falling 31% sequentially to $1.463 bn. CFO Dave Glazer linked the gap to shorter contract lengths for new eight-figure deals. Billings reached $2.39 bn, up 114% YoY, but the slowdown in TCV prompted investor concern.

Adjusted operating margin hit 62% and GAAP net income was $1.128 bn, reflecting a 49% margin. The company raised its full-year revenue guide to $8.530 bn to $8.534 bn and forecast Q4 revenue of $2.649 bn to $2.653 bn.

Our read: Palantir’s rapid commercial expansion and high NRR demonstrate strong product-market fit, yet the reliance on shorter contracts creates a volatility risk for future bookings. The upcoming quarters will test whether accelerated revenue can translate into sustained TCV growth.