Palantir (PLTR) Q3 2026 Earnings Call Transcript

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DATE

Monday, Nov. 2, 2026

CALL PARTICIPANTS

• Palantir finance team – Ana Soro
• Chief Executive Officer – Alex Karp
• Chief Technology Officer – Shyam Sankar
• Chief Financial Officer – Dave Glazer
• Chief Revenue Officer and Chief Legal Officer – Ryan Taylor

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TAKEAWAYS

• Revenue — $2.313 billion, representing 96% year-over-year growth and 20% sequential growth as the company surpassed the $2 billion quarterly threshold for the first time.
• U.S. Revenue — $1.937 billion, growing 119% year over year and 23% sequentially to represent 84% of total company revenue.
• U.S. Commercial Revenue — $984 million, increasing 148% year over year and 29% sequentially, surpassing U.S. government revenue for the first time in the company’s history.
• U.S. Government Revenue — $953 million, representing 96% year-over-year growth and 18% sequential growth driven by execution in existing programs and new awards.
• International Revenue — $376 million combined, with international commercial revenue growing 21% year over year to $184 million and international government revenue rising 31% to $192 million.
• Full-Year 2026 Revenue Guidance — $8.530 billion to $8.534 billion, representing an increase of nine percentage points over the previous guidance midpoint to approximately 91% growth.
• Full-Year 2026 U.S. Commercial Revenue Guidance — In excess of $3.559 billion, representing a growth rate of at least 143% for the fiscal year.
• Adjusted Income from Operations — $1.427 billion, representing an adjusted operating margin of 62% for the third quarter.
• GAAP Net Income — $1.128 billion, representing a 49% margin and an eightfold increase over the last 24 months.
• Adjusted Free Cash Flow — $1.216 billion, representing a 53% margin, with full-year 2026 guidance raised to between $4.8 billion to $5 billion.
• U.S. Commercial Customer Count — 686 customers, representing 29% year-over-year growth and 5% growth from the previous quarter.
• Net Dollar Retention — 165%, an increase of 800 basis points compared to the prior quarter.
• Total Remaining Deal Value (RDV) — $13.4 billion, reflecting 55% year-over-year growth driven by accelerated U.S. commercial momentum.
• Remaining Performance Obligations (RPO) — $4.9 billion, representing 88% year-over-year growth despite being flat sequentially due to government contract structures.
• Deal Activity — 212 deals of at least $1 million closed during the quarter, including 107 deals of at least $5 million and 64 deals of at least $10 million.
• U.S. Commercial TCV Bookings — $1.463 billion for the quarter, contributing to a trailing 12-month total of $6.114 billion, which is a 62% increase over the prior period.
• GAAP Earnings Per Share — $0.44, matching adjusted earnings per share of $0.44 for the third quarter.
• Rule of 40 Score — 158%, representing the 13th consecutive quarter of expansion for this combined growth and margin metric.
• Cash and Equivalents — $10.4 billion in cash, cash equivalents, and U.S. Treasury securities as of the end of the third quarter.
• Q4 2026 Guidance — Revenue expected between $2.649 billion to $2.653 billion with adjusted income from operations between $1.640 billion to $1.644 billion.

SUMMARY

Palantir Technologies Inc. (PLTR -3.13%) reported third-quarter revenue of $2.313 billion, representing 96% year-over-year growth driven primarily by an acceleration in the U.S. commercial segment. Management stated that U.S. commercial revenue surpassed U.S. government revenue for the first time in company history, a milestone attributed to the rapid adoption of the Artificial Intelligence Platform (AIP) and the emergence of the Sovereign AI movement. The company raised its full-year 2026 revenue guidance by $400 million at the midpoint, reflecting what management described as insatiable market demand for operationalizing large language models within enterprise workflows. The company also confirmed its fourth consecutive quarter of GAAP operating income exceeding $1 billion, while reporting a Rule of 40 score of 158%.

• Chief Revenue Officer Taylor stated, “The third quarter average trailing 12-month revenue from our top 20 customers increased 76% year-over-year to $146 million per customer.”
• Chief Technology Officer Sankar reported that during a recent PACOM exercise, the company deployed a 30 billion parameter post-train model that demonstrated superior task-specific performance compared to a 3 trillion parameter GPT 5.6 Sol model.
• Chief Revenue Officer Taylor indicated that an industrial materials company converted a nearly $3 million pilot from the second quarter into a $29 million annual contract value deal in the third quarter.
• Management noted that the Sovereign AI revolution is accelerating conversion cycles, citing a global home appliance company that expanded a $1 million pilot to a $15 million annual contract value deal within the same quarter.
• Chief Technology Officer Sankar stated that the Maven program has exceeded 100,000 users and is now available to all military services beyond combatant commands.
• Chief Revenue Officer Taylor reported that L3Harris achieved a 95% cost reduction and improved performance by fine-tuning open-source models on its own data within the Palantir workflow.
• The company reported that U.S. commercial remaining deal value grew 79% year over year to $6.517 billion, reflecting the increasing scale of long-term enterprise commitments.

INDUSTRY GLOSSARY

• Sovereign AI: The practice of organizations using proprietary data to fine-tune and post-train AI models on their own infrastructure to retain control over intellectual property and decision intelligence.
• Ontology: A central data operating system within Palantir’s platforms that integrates disparate data sources into a coherent model of an organization’s operations, assets, and processes.
• AIP (Artificial Intelligence Platform): Palantir’s software that provides access to large language models and integrates them with an organization’s private data and operational workflows.
• Maven: A foundational AI-driven defense program used by the United States joint force for situational awareness and target identification.
• TITAN (Tactical Intelligence Targeting Access Node): A mobile ground station system for the U.S. Army that provides intelligence and targeting data; Palantir serves as the prime contractor.
• ACV (Annual Contract Value): The total value of contracts closed in a period divided by the dollar-weighted average contract duration.
• TCV (Total Contract Value): The total potential lifetime value of a contract at the time of execution, including potential option years.
• RDV (Remaining Deal Value): The total remaining value of all existing contracts as of the end of a reporting period.
• RPO (Remaining Performance Obligations): The value o

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