PLTR · Earnings · Q3 fiscal 2026strong quarterPalantir Q3 2026 earnings: U.S. commercial tops government revenue for the first time
Palantir crossed $2 billion in quarterly revenue for the first time, with U.S. commercial growing 148% year over year and margins expanding sharply.
Alpha Finance
PLTRQ3 fiscal 2026 earnings- Revenue hit $2.31 billion, up 96% year over year, the first quarter Palantir has ever exceeded $2 billion.
- U.S. commercial revenue reached $984 million, up 148% year over year, surpassing U.S. government revenue of $953 million for the first time.
- Adjusted free cash flow (cash left after paying for the business and its investments) was $1.216 billion, a 53% margin, with $10.4 billion in cash and Treasury securities on hand.
The quarter in numbers
Palantir reported Q3 2026 revenue of $2.31 billion, up 96% from a year ago. GAAP net income was $1.128 billion, a 49% margin. GAAP diluted EPS and adjusted diluted EPS were both $0.44.
GAAP income from operations was $1.085 billion, a 47% margin. Adjusted income from operations came in at $1.427 billion, a 62% margin. The gap between the two figures is largely explained by $318.9 million in stock-based compensation, a non-cash cost paid in company shares rather than cash.
What drove the results
The standout story was U.S. commercial revenue, which grew 148% year over year and 29% quarter over quarter to $984 million. That pushed it past U.S. government revenue of $953 million, which itself grew 96% year over year. Total U.S. revenue reached $1.937 billion, up 119% from a year ago.
Palantir closed 212 deals worth at least $1 million each, including 64 deals of at least $10 million. U.S. commercial remaining deal value (the total value left in signed contracts) stood at $6.517 billion, up 79% year over year. Adjusted free cash flow was $1.216 billion for the quarter, a 53% margin, and the company held $10.4 billion in cash, equivalents, and U.S. Treasury securities.
One figure worth noting: total contract value of $2.918 billion grew only 6% year over year, a much slower pace than revenue. Most contracts also include termination-for-convenience clauses, meaning the remaining deal value and contract totals may not all become revenue.
Guidance and outlook
For Q4 2026, Palantir guided for revenue of $2.649 to $2.653 billion and adjusted income from operations of $1.640 to $1.644 billion.
For the full year 2026, the company raised its revenue guidance to $8.530 to $8.534 billion, implying roughly 91% year-over-year growth. It also raised its U.S. commercial revenue guidance to more than $3.559 billion, at least 143% growth. Full-year adjusted income from operations guidance was raised to $5.245 to $5.249 billion, and adjusted free cash flow guidance to $4.8 to $5.0 billion. Management also said it expects positive GAAP operating income and net income in each quarter of the year.
| Share price | $171.70 |
|---|---|
| Market value | $396.1 billion |
| P/E | 120.9x (sector median 32.3x (Software - Infrastructure)) |
| EV/EBITDA | 115.0x |
| Free cash flow yield | 1.0% |
| Alpha Score | 69 / 100 strong |
| Intrinsic value | $70.98 -58.7% vs price |
| Analyst target | $217.97 26.9% vs price, 32 analysts |
| Q4 2026 Revenue | $2.649 to $2.653 billion |
|---|---|
| Q4 2026 Adjusted Income from Operations | $1.640 to $1.644 billion |
| Full Year 2026 Revenue | $8.530 to $8.534 billion Raised; roughly 91% YoY growth |
| Full Year 2026 U.S. Commercial Revenue | More than $3.559 billion Raised; at least 143% YoY growth |
| Full Year 2026 Adjusted Income from Operations | $5.245 to $5.249 billion Raised |
| Full Year 2026 Adjusted Free Cash Flow | $4.8 to $5.0 billion Raised |
How the stock looks now
According to Alpha Finance data, PLTR trades at $171.70, down 2.1% on the day, with a market cap of $396.1 billion. The stock sits well above the sector on every valuation multiple: a price-to-earnings ratio of 120.9x versus a Software, Infrastructure sector median of 32.3x, an EV/EBITDA of 115.0x versus 20.5x, and a price-to-sales ratio of 54.3x versus 6.7x.
Alpha Finance's average intrinsic value estimate for PLTR is $70.98, roughly 59% below the current price. The models used are a discounted cash flow model ($47.36), an EBITDA-based model ($64.80), and a historical valuation model ($100.77). These are Alpha Finance estimates, not company figures.
Alpha Finance gives PLTR an Alpha Score of 69 out of 100, rated STRONG. The score is high on growth (27.9 out of 28) and profitability (21.7 out of 25) but low on valuation (2.9 out of 30). The 32 analysts tracked by Alpha Finance have an average target price of $217.97, about 27% above the current price.
| Share price | $171.70 |
|---|---|
| Market value | $396.1 billion |
| P/E | 120.9x (sector median 32.3x (Software - Infrastructure)) |
| EV/EBITDA | 115.0x |
| Free cash flow yield | 1.0% |
| Alpha Score | 69 / 100 strong |
| Intrinsic value | $70.98 -58.7% vs price |
| Analyst target | $217.97 26.9% vs price, 32 analysts |
What to watch next
The slowdown in total contract value growth (6% year over year versus 96% revenue growth) is a gap worth monitoring. If new contract signings do not accelerate, the revenue growth rate could eventually slow even if the current backlog converts well.
Stock-based compensation of $318.9 million in a single quarter is a real cost to shareholders because it dilutes ownership over time. Share count rose about 5% over the past year, according to Alpha Finance data. Watching whether that dilution rate changes will matter for per-share results.
Recent headlines point to questions about Palantir's international growth prospects and whether AI platform competition from larger technology companies could pressure its commercial expansion. The pace of U.S. commercial deal signings in Q4 will be an early indicator.
Palantir delivered its fastest revenue growth on record and crossed $2 billion in quarterly revenue for the first time, driven by an extraordinary acceleration in U.S. commercial demand. The central open question is whether the gap between slowing contract value growth and surging reported revenue is a timing difference or an early sign that the top-line pace is harder to sustain than guidance implies.
Change the growth, margins and discount rate and see what the stock is worth to you.
- Palantir Technologies Inc. earnings release (Form 8-K), filed November 2, 2026
- PLTR on Alpha Finance: price, Alpha Score, valuation and analyst data
Written with Alpha AI from the company's SEC filing and Alpha Finance data, with every figure checked against those sources. For information only, not investment advice.
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