Palantir’s revenue rises 96% to $2.3 billion as investors’ patience rests on a hair trigger

Palantir Technologies reported a staggering 96% increase in revenue for the third quarter, reaching $2.3 billion. This marks a significant jump from its previous 63% growth and $1.2 billion in revenue. The tech company has raised its full-year revenue forecast to between $8.53 billion and $8.534 billion, a nearly 91% growth rate.

Palantir's adjusted and GAAP earnings per share have also seen a notable improvement, with $0.44 compared to $0.21 and $0.18 respectively in the same period last year. Analysts had been anticipating revenue of $2.18 billion and adjusted earnings of 41 cents per share. CEO Alex Karp described the results as "extraordinary" and highlighted the company's 96% growth rate as "absolutely striking."

The strong performance comes amidst a downturn in certain tech stocks, providing insight into the AI trade's current state. Karp noted the potential for a major shift across various industries, including banks, insurers, hospitals, and even law firms, as AI software transforms into revenue growth. The software maker serves as a key indicator of public market confidence in AI software converting into revenue.

Palantir's U.S. commercial revenue grew by 148% to $984 million, surpassing U.S. government revenue for the first time, which grew by 96% to $953 million. Total contract value increased by 6% to $2.9 billion, with U.S. commercial contract value rising by 11% to $1.5 billion. Palantir has forecast revenue of $2.64 billion to $2.65 billion, or about 88% growth for the current quarter, with fiscal year 2026 revenue guidance reaching 91% year-over-year growth.