Palantir Reports Q3 2026 U.S. Comm Revenue Growth of 148% Y/Y and Revenue Growth
Palantir Reports Q3 2026 U.S. Comm Revenue Growth of 148% Y/Y and Revenue Growth of 96% Y/Y; Raises FY 2026 Revenue Guidance to 91% Y/Y Growth and U.S. Comm Revenue Guidance to 143% Y/Y, Crushing Consensus Expectations 11/2/2026
MIAMI — (BUSINESS WIRE) — Palantir Technologies Inc. (NASDAQ:PLTR) today announced financial results for the third quarter ended September 30, 2026.
“The Sovereign AI movement is imposing the most dramatic dichotomy between haves and have nots that I have witnessed in 30 years of business. Every institution—government and commercial—is rapidly being forced, voluntarily or not, into one of these two categories,” said Alex Karp, Co-Founder and Chief Executive Officer of Palantir Technologies.
“Witness our third quarter results: overall revenue soared 96% year-over-year, U.S. commercial revenue grew 148% year-over-year and 29% sequentially, and aggregate U.S. revenue grew 119% year-over-year. Our U.S. commercial revenue has surpassed our U.S. government revenue for the first time in our company’s history.
”The Sovereign AI moment is purpose-built for Palantir. Our products—from Foundry and Ontology to AIP with its ontologized, fine-tuned open-weight models—ignite a self-improvement loop that joins and aligns the workflow with its optimal model and us with our partners. This dialectic drives transformational value for both Palantir and our partners—and works only in artistic combination. Each becomes stronger as the sum becomes more powerful.”
• U.S. commercial revenue surpassed U.S. government revenue for the first time ever
• U.S. revenue grew 119% year-over-year and 23% quarter-over-quarter to $1.937 billion
◦ U.S. commercial revenue grew 148% year-over-year and 29% quarter-over-quarter to $984 million
◦ U.S. government revenue grew 96% year-over-year and 18% quarter-over-quarter to $953 million
• Revenue grew 96% year-over-year and 20% quarter-over-quarter to $2.313 billion
• Closed 212 deals of at least $1 million, 107 deals of at least $5 million, and 64 deals of at least $10 million
• U.S. commercial remaining deal value (“RDV”) of $6.517 billion, up 79% year- over-year and 4% quarter-over-quarter
(Unaudited) (Amounts in thousands, except percentages and per share amounts) Amount Third Quarter ────────────────────────────────────────────────────────────────────────────── Revenue $ 2,313,411 Year-over-year growth 96 % Amount Margin Income from Operations $ 1,084,845 47 % Adjusted Income from $ 1,426,840 62 % Operations Cash from Operations $ 1,204,570 52 % Adjusted Free Cash Flow $ 1,216,077 53 % Net Income Attributable to Common $ 1,128,012 49 % Stockholders Adjusted Net Income Attributable to $ 1,142,347 Common Stockholders Adjusted EBITDA $ 1,433,886 62 % GAAP EPS, Diluted $ 0.44 Adjusted EPS, Diluted $ 0.44
• We are raising our U.S. commercial revenue guidance to in excess of $3.559 billion, representing a growth rate of at least 143%.
• We are raising our adjusted income from operations guidance to between $5.245 - $5.249 billion.
• We are raising our adjusted free cash flow guidance to between $4.8 - $5.0 billion.
• And we continue to expect GAAP operating income and net income in each quarter of this year.
Palantir CEO Alex Karp’s quarterly letter is available through Palantir’s website at https://www.palantir.com/newsroom/letters.
A live public webcast will be held at 5:00 PM ET today to discuss the results for our third quarter ended September 30, 2026 and financial outlook. The webcast can be accessed by registering online at https://palantir.events/palantirearnings-q32026. A replay of the webcast will be available at https://investors.palantir.com following the event.
An investor presentation, including supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, will be available through Palantir’s Investor Relations website at https://investors.palantir.com.
This press release and statements on our earnings webcast contain “forward- looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our financial outlook, product development and related timing, distribution, and pricing, expected benefits of and applications for our software platforms, business strategy, and plans (including strategy and plans relating to our Artificial Intelligence Platform (“AIP”) and Sovereign AI, and the accompanying sales and marketing efforts, sales force, partnerships, and customers), investments in our business, market trends and market size, opportunities (including growth opportunities), our expectations regarding our existing and potential investments in, and commercial contracts with, various entities, and our
expectations regarding macroeconomic events. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as “guidance,” “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to risks detailed in our filings with the Securities and Exchange Commission (the “SEC”), including in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and other filings and reports that we may file from time to time with the SEC, including our Quarterly Report on Form 10-Q for the quarter ended September 30, 2026. In particular, the following factors, among others, could cause our results to differ materially from those expressed or implied by such forward-looking statements: our ability to successfully execute our business and growth strategy; the sufficiency of our available funds to meet our liquidity needs; the demand for our platforms, product offerings, and services in general; our ability to increase our number of new customers and revenue generated from customers; our ability to realize some or all of the total contract value of customer contracts as revenue, including any contractual options available to customers or contractual periods that are subject to termination for convenience provisions; our long and unpredictable sales cycle; our ability to successfully execute our channel sales and other strategic initiatives with third parties; our ability to retain and expand our customer base; the fluctuation of our results of operations and our key business measures on a quarterly basis in future periods; the seasonality of our business; the implementation process for our platforms, which may be complex and lengthy; our ability to successfully develop and deploy new technologies to address the needs of our existing or prospective customers; our ability to make our platforms and product offerings easier to install, consume, and use; our ability to maintain and enhance our brand and reputation; our ability to maintain and enhance our culture as our business grows and as we pursue our business and financial goals; news or social media coverage about us or our leadership, including but not limited to coverage that presents, or relies on, inaccurate, misleading, incomplete, or otherwise damaging information; the impact of recent, ongoing, or future global macroeconomic and geopolitical events, fluctuating interest rates, monetary policy changes, foreign currency fluctuations, or the potential or actual imposition of tariffs or other impacts on trade relations on the business and operations of our company or of our existing or prospective customers and partners; issues raised by the use of artificial intelligence in our platforms; and any breach or access to our or customer or third-party data.
The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Past performance is not necessarily indicative of future results.
For the purpose of this press release, our earnings webcast, and our CEO’s letter:
• Total contract value (“TCV”) is the total potential lifetime value of contracts entered into with, or awarded by, our customers at the time of contract execution, annual contract value (“ACV”) is defined as the total value of contracts closed in the period divided by the dollar-weighted average contract duration of those same contracts, and remaining deal value (“RDV”) is the total remaining value of contracts as of the end of the reporting period. Except as noted below, TCV, ACV, and RDV each presume the exercise of all contract options available to our customers and no termination of contracts. However, the majority of our contracts are subject to termination provisions, including for convenience, and there can be no guarantee that contracts are not terminated or that contract options will be exercised. Further, RDV may exclude all or some portion of the value of certain commercial contracts as a result of our ongoing assessments of customers’ financial condition, including the consideration of such customers’ ability and intention to pay, and whether such contracts continue to meet the criteria for revenue recognition, among other factors.
• Remaining performance obligations (“RPO”) reflect the total values of contracts that have been entered into with, or awarded by, our customers, and represent non-cancelable contracted revenue that has not yet been recognized, which includes deferred revenue and, in certain instances, amounts that will be invoiced. We have elected the practical expedient, as permitted under Accounting Standards Codification 606— Revenue from Contracts with Customers , to not disclose remaining performance obligations for contracts with original terms of twelve months or less.
• The term “strategic commercial contracts” is as defined in our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2026.
• “Dollar-weighted duration basis” is the total value of contracts closed in the applicable period, divided by the dollar-weighted average contract duration of those same contracts.
• The term “Rule of 40” refers to the sum of our revenue growth rate year-over- year and our adjusted operating margin for each of the periods presented.
• Average trailing twelve-month (“TTM”) revenue per customer is calculated as total revenue for the trailing twelve-month period divided by the number of customers from which we recognized that revenue.
This press release and the accompanying tables, as well as our earnings webcast, and our CEO’s letter, contain the non-GAAP financial measures adjusted income from operations, which excludes stock-based compensation and related employer payroll taxes; adjusted operating margin; adjusted free cash flow; adjusted free cash flow margin; adjusted earnings before interest, taxes, depreciation, and amortization (“adjusted EBITDA”); adjusted EBITDA margin; adjusted net income attributable to common stockholders; and adjusted EPS, diluted.
We believe these non-GAAP financial measures and other metrics described in this press release help us evaluate our business, identify trends affecting Palantir’s business, formulate business plans and financial projections, and make strategic decisions. We exclude stock-based compensation, which is a non- cash expense, from these non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance and provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team. We exclude employer payroll taxes related to stock-based compensation as it is difficult to predict and outside of Palantir’s control.
Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations as they do not include the impact of certain expenses that are reflected in our consolidated statements of operations. For example, adjusted free cash flow does not reflect our future contractual commitments or the total increase or decrease in our cash balances for a given period. Thus, our non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP.
We compensate for these limitations by providing a reconciliation of each of these non-GAAP measures to the most comparable GAAP measure. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measure.
A reconciliation table of the most comparable GAAP financial measure to each non-GAAP financial measure used in this press release is included at the end of this release. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, reconciling items that may be incurred in the future, such as stock-based compensation and related employer payroll taxes, the effect of which may be significant.
Palantir uses its Investor Relations website at https://investors.palantir.com as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Palantir’s Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, and webcasts.
Foundational software of tomorrow. Delivered today. Additional information is available at https://www.palantir.com.
Assets As of September As of December Current 30, 31, assets: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash $ 3,619,414 $ 1,423,796 equivalents Marketable 6,942,117 5,753,247 securities Accounts receivable, 1,883,498 1,042,065 net Prepaid expenses and 322,741 139,066 other current assets Total current 12,767,770 8,358,174 assets Property and 65,000 51,960 equipment, net Operating lease 244,938 200,105 right-of-use assets Other assets 335,268 290,153 Total assets $ 13,412,976 $ 8,900,392 Liabilities and Equity Current liabilities: Accounts payable, accrued $ 623,888 $ 409,552 liabilities, and other Deferred 661,255 408,963 revenue Customer 512,573 357,066 deposits Total current 1,797,716 1,175,581 liabilities Deferred revenue, 32,660 46,216 noncurrent Customer deposits, 268 18 noncurrent Operating lease 225,267 183,474 liabilities, noncurrent Other noncurrent 11,965 7,092 liabilities Total 2,067,876 1,412,381 liabilities Palantir's stockholders’ equity: Common stock 2,409 2,391 Additional paid-in 11,739,968 10,933,325 capital Accumulated other comprehensive -12,435 13,942 income (loss), net Accumulated -501,961 -3,562,390 deficit Total Palantir's 11,227,981 7,387,268 stockholders’ equity Noncontrolling 117,119 100,743 interests Total equity 11,345,100 7,488,011 Total liabilities $ 13,412,976 $ 8,900,392 and equity
Nine Months Ended September 30, Operating activities 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 3,076,805 $ 1,023,037 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and 22,031 19,127 amortization Stock-based 785,690 487,628 compensation Unrealized and realized (gain) loss from -34,997 5,005 marketable securities, net Other operating -97,557 -16,220 activities Changes in operating assets and liabilities: Accounts receivable, -843,438 -422,977 net Prepaid expenses and -162,110 50,343 other assets Accounts payable and 204,240 90,582 accrued liabilities Contract liabilities 396,996 160,154 Other liabilities -27,758 -39,501 Net cash provided by operating 3,319,902 1,357,178 activities Investing activities Purchases of property and -29,969 -20,610 equipment Purchases of marketable -5,137,861 -6,091,513 securities Proceeds from sales and redemption of 4,079,225 4,360,327 marketable securities Other investing -50,000 -73,924 activities Net cash used in -1,138,605 -1,825,720 investing activities Financing activities Proceeds from the exercise of common 22,606 120,839 stock options Other financing -2,491 -136,851 activities Net cash provided by (used in) financing 20,115 -16,012 activities Effect of foreign exchange on cash, cash -20 9,444 equivalents, and restricted cash Net increase (decrease) in cash, cash 2,201,392 -475,110 equivalents, and restricted cash Cash, cash equivalents, and restricted 1,451,425 2,119,936 cash - beginning of period Cash, cash equivalents, and $ 3,652,817 $ 1,644,826 restricted cash - end of period
Three Months Ended September 30, 2026 ──────────────────────────────────────────────────────────────────────────── Net income attributable to common $ 1,128,012 stockholders Add: net income attributable to 6,429 noncontrolling interests Less: interest income -88,936 Add: other (income) expense, net 25,780 Add: provision for income taxes 13,560 Add: depreciation and amortization 7,046 Add: stock-based compensation 318,889 Add: employer payroll taxes related to 23,106 stock-based compensation Adjusted EBITDA $ 1,433,886 Adjusted EBITDA margin 62 %
(unaudited) Adjusted Net Income Attributable to Common Stockholders and Adjusted Earnings Per Share, Diluted
Three Months Ended September 30, 2026 ────────────────────────────────────────────────────────────────────────────── Net income attributable to common $ 1,128,012 stockholders Add: stock-based compensation 318,889 Add: employer payroll taxes related to stock-based 23,106 compensation Less: income tax effects and adjustments(1) -327,660 Adjusted net income attributable to common $ 1,142,347 stockholders Weighted-average shares used in computing adjusted 2,573,926 earnings per share, diluted Adjusted earnings per share, diluted $ 0.44
(1) Income tax effect is based on an estimated long-term annual effective tax rate of 23.0% for the period presented.
Full text with the tables
Exhibit 99.1
Palantir Reports Q3 2026 U.S. Comm Revenue Growth of 148% Y/Y and Revenue Growth
of 96% Y/Y; Raises FY 2026 Revenue Guidance to 91% Y/Y Growth and U.S. Comm
Revenue Guidance to 143% Y/Y, Crushing Consensus Expectations
11/2/2026
MIAMI — (BUSINESS WIRE) — Palantir Technologies Inc. (NASDAQ:PLTR) today
announced financial results for the third quarter ended September 30, 2026.
“The Sovereign AI movement is imposing the most dramatic dichotomy between haves
and have nots that I have witnessed in 30 years of business. Every
institution—government and commercial—is rapidly being forced, voluntarily or
not, into one of these two categories,” said Alex Karp, Co-Founder and Chief
Executive Officer of Palantir Technologies.
“Witness our third quarter results: overall revenue soared 96% year-over-year,
U.S. commercial revenue grew 148% year-over-year and 29% sequentially, and
aggregate U.S. revenue grew 119% year-over-year. Our U.S. commercial revenue has
surpassed our U.S. government revenue for the first time in our company’s
history.
”The Sovereign AI moment is purpose-built for Palantir. Our products—from
Foundry and Ontology to AIP with its ontologized, fine-tuned open-weight
models—ignite a self-improvement loop that joins and aligns the workflow with
its optimal model and us with our partners. This dialectic drives
transformational value for both Palantir and our partners—and works only in
artistic combination. Each becomes stronger as the sum becomes more powerful.”
Q3 2026 Highlights
• U.S. commercial revenue surpassed U.S. government revenue for the first time
ever
• U.S. revenue grew 119% year-over-year and 23% quarter-over-quarter to $1.937
billion
◦ U.S. commercial revenue grew 148% year-over-year and 29% quarter-over-quarter
to $984 million
◦ U.S. government revenue grew 96% year-over-year and 18% quarter-over-quarter
to $953 million
• Revenue grew 96% year-over-year and 20% quarter-over-quarter to $2.313 billion
◦ Quarterly revenue surpassed $2 billion for the first time ever
• Closed 212 deals of at least $1 million, 107 deals of at least $5 million, and
64 deals of at least $10 million
• Closed total contract value (“TCV”) of $2.918 billion, up 6% year-over-year
◦ Closed $1.463 billion of U.S. commercial TCV, up 11% year-over-year
• U.S. commercial remaining deal value (“RDV”) of $6.517 billion, up 79% year-
over-year and 4% quarter-over-quarter
• GAAP income from operations of $1.085 billion, representing a 47% margin
• Adjusted income from operations of $1.427 billion, representing a 62% margin
• Rule of 40 score of 158%
• GAAP net income of $1.128 billion, representing a 49% margin
• Cash from operations of $1.205 billion, representing a 52% margin
• Adjusted free cash flow of $1.216 billion, representing a 53% margin
• GAAP earnings per share (“EPS”) of $0.44
• Adjusted EPS of $0.44
• Cash, cash equivalents, and U.S. Treasury securities of $10.4 billion
Q3 2026 Financial Summary
(Unaudited)
(Amounts in thousands,
except percentages and
per share amounts)
Amount Third Quarter
──────────────────────────────────────────────────────────────────────────────
Revenue $ 2,313,411
Year-over-year growth 96 %
Amount Margin
Income from Operations $ 1,084,845 47 %
Adjusted Income from $ 1,426,840 62 %
Operations
Cash from Operations $ 1,204,570 52 %
Adjusted Free Cash Flow $ 1,216,077 53 %
Net Income Attributable
to Common $ 1,128,012 49 %
Stockholders
Adjusted Net Income
Attributable to $ 1,142,347
Common Stockholders
Adjusted EBITDA $ 1,433,886 62 %
GAAP EPS, Diluted $ 0.44
Adjusted EPS, Diluted $ 0.44
Outlook
For Q4 2026, we expect:
• Revenue of between $2.649 - $2.653 billion.
• Adjusted income from operations of between $1.640 - $1.644 billion.
For full year 2026:
• We are raising our revenue guidance to between $8.530 - $8.534 billion.
• We are raising our U.S. commercial revenue guidance to in excess of $3.559
billion, representing a growth rate of at least 143%.
• We are raising our adjusted income from operations guidance to between $5.245
- $5.249 billion.
• We are raising our adjusted free cash flow guidance to between $4.8 - $5.0
billion.
• And we continue to expect GAAP operating income and net income in each quarter
of this year.
CEO Letter
Palantir CEO Alex Karp’s quarterly letter is available through Palantir’s
website at https://www.palantir.com/newsroom/letters.
Earnings Webcast
A live public webcast will be held at 5:00 PM ET today to discuss the results
for our third quarter ended September 30, 2026 and financial outlook. The
webcast can be accessed by registering online at
https://palantir.events/palantirearnings-q32026. A replay of the webcast will be
available at https://investors.palantir.com following the event.
An investor presentation, including supplemental financial information and
reconciliations of certain non-GAAP measures to their nearest comparable GAAP
measures, will be available through Palantir’s Investor Relations website at
https://investors.palantir.com.
Forward-Looking Statements
This press release and statements on our earnings webcast contain “forward-
looking statements” within the meaning of the “safe harbor” provisions of the
Private Securities Litigation Reform Act of 1995, including, but not limited to,
statements regarding our financial outlook, product development and related
timing, distribution, and pricing, expected benefits of and applications for our
software platforms, business strategy, and plans (including strategy and plans
relating to our Artificial Intelligence Platform (“AIP”) and Sovereign AI, and
the accompanying sales and marketing efforts, sales force, partnerships, and
customers), investments in our business, market trends and market size,
opportunities (including growth opportunities), our expectations regarding our
existing and potential investments in, and commercial contracts with, various
entities, and our
expectations regarding macroeconomic events. These forward-looking statements
are made as of the date they were first issued and were based on current
expectations, estimates, forecasts, and projections as well as the beliefs and
assumptions of management. Words such as “guidance,” “expect,” “anticipate,”
“should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,”
“potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and
variations of these terms or the negative of these terms and similar expressions
are intended to identify these forward-looking statements. Forward-looking
statements are subject to a number of risks and uncertainties, many of which
involve factors or circumstances that are beyond our control. Our actual results
could differ materially from those stated or implied in forward-looking
statements due to a number of factors, including but not limited to risks
detailed in our filings with the Securities and Exchange Commission (the “SEC”),
including in our Annual Report on Form 10-K for the fiscal year ended December
31, 2025 and other filings and reports that we may file from time to time with
the SEC, including our Quarterly Report on Form 10-Q for the quarter ended
September 30, 2026. In particular, the following factors, among others, could
cause our results to differ materially from those expressed or implied by such
forward-looking statements: our ability to successfully execute our business and
growth strategy; the sufficiency of our available funds to meet our liquidity
needs; the demand for our platforms, product offerings, and services in general;
our ability to increase our number of new customers and revenue generated from
customers; our ability to realize some or all of the total contract value of
customer contracts as revenue, including any contractual options available to
customers or contractual periods that are subject to termination for convenience
provisions; our long and unpredictable sales cycle; our ability to successfully
execute our channel sales and other strategic initiatives with third parties;
our ability to retain and expand our customer base; the fluctuation of our
results of operations and our key business measures on a quarterly basis in
future periods; the seasonality of our business; the implementation process for
our platforms, which may be complex and lengthy; our ability to successfully
develop and deploy new technologies to address the needs of our existing or
prospective customers; our ability to make our platforms and product offerings
easier to install, consume, and use; our ability to maintain and enhance our
brand and reputation; our ability to maintain and enhance our culture as our
business grows and as we pursue our business and financial goals; news or social
media coverage about us or our leadership, including but not limited to coverage
that presents, or relies on, inaccurate, misleading, incomplete, or otherwise
damaging information; the impact of recent, ongoing, or future global
macroeconomic and geopolitical events, fluctuating interest rates, monetary
policy changes, foreign currency fluctuations, or the potential or actual
imposition of tariffs or other impacts on trade relations on the business and
operations of our company or of our existing or prospective customers and
partners; issues raised by the use of artificial intelligence in our platforms;
and any breach or access to our or customer or third-party data.
The forward-looking statements included in this press release represent our
views as of the date of this press release. We anticipate that subsequent events
and developments will cause our views to change. We undertake no intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise. These forward-looking
statements should not be relied upon as representing our views as of any date
subsequent to the date of this press release. Past performance is not
necessarily indicative of future results.
Additional Definitions
For the purpose of this press release, our earnings webcast, and our CEO’s
letter:
• Total contract value (“TCV”) is the total potential lifetime value of
contracts entered into with, or awarded by, our customers at the time of
contract execution, annual contract value (“ACV”) is defined as the total value
of contracts closed in the period divided by the dollar-weighted average
contract duration of those same contracts, and remaining deal value (“RDV”) is
the total remaining value of contracts as of the end of the reporting period.
Except as noted below, TCV, ACV, and RDV each presume the exercise of all
contract options available to our customers and no termination of contracts.
However, the majority of our contracts are subject to termination provisions,
including for convenience, and there can be no guarantee that contracts are not
terminated or that contract options will be exercised. Further, RDV may exclude
all or some portion of the value of certain commercial contracts as a result of
our ongoing assessments of customers’ financial condition, including the
consideration of such customers’ ability and intention to pay, and whether such
contracts continue to meet the criteria for revenue recognition, among other
factors.
• Remaining performance obligations (“RPO”) reflect the total values of
contracts that have been entered into with, or awarded by, our customers, and
represent non-cancelable contracted revenue that has not yet been recognized,
which includes deferred revenue and, in certain instances, amounts that will be
invoiced. We have elected the practical expedient, as permitted under Accounting
Standards Codification 606— Revenue from Contracts with Customers , to not
disclose remaining performance obligations for contracts with original terms of
twelve months or less.
• The term “strategic commercial contracts” is as defined in our Quarterly
Report on Form 10-Q for the fiscal quarter ended June 30, 2026.
• “Dollar-weighted duration basis” is the total value of contracts closed in the
applicable period, divided by the dollar-weighted average contract duration of
those same contracts.
• The term “Rule of 40” refers to the sum of our revenue growth rate year-over-
year and our adjusted operating margin for each of the periods presented.
• Average trailing twelve-month (“TTM”) revenue per customer is calculated as
total revenue for the trailing twelve-month period divided by the number of
customers from which we recognized that revenue.
Non-GAAP Financial Measures
This press release and the accompanying tables, as well as our earnings webcast,
and our CEO’s letter, contain the non-GAAP financial measures adjusted income
from operations, which excludes stock-based compensation and related employer
payroll taxes; adjusted operating margin; adjusted free cash flow; adjusted free
cash flow margin; adjusted earnings before interest, taxes, depreciation, and
amortization (“adjusted EBITDA”); adjusted EBITDA margin; adjusted net income
attributable to common stockholders; and adjusted EPS, diluted.
We believe these non-GAAP financial measures and other metrics described in this
press release help us evaluate our business, identify trends affecting
Palantir’s business, formulate business plans and financial projections, and
make strategic decisions. We exclude stock-based compensation, which is a non-
cash expense, from these non-GAAP financial measures because we believe that
excluding this item provides meaningful supplemental information regarding
operational performance and provides useful information to investors and others
in understanding and evaluating our operating results in the same manner as our
management team. We exclude employer payroll taxes related to stock-based
compensation as it is difficult to predict and outside of Palantir’s control.
Our definitions may differ from the definitions used by other companies and
therefore comparability may be limited. In addition, other companies may not
publish these or similar metrics. Further, these metrics have certain
limitations as they do not include the impact of certain expenses that are
reflected in our consolidated statements of operations. For example, adjusted
free cash flow does not reflect our future contractual commitments or the total
increase or decrease in our cash balances for a given period. Thus, our non-GAAP
financial measures should be considered in addition to, not as a substitute for,
or in isolation from, measures prepared in accordance with GAAP.
We compensate for these limitations by providing a reconciliation of each of
these non-GAAP measures to the most comparable GAAP measure. We encourage
investors and others to review our business, results of operations, and
financial information in their entirety, not to rely on any single financial
measure, and to view these non-GAAP measures in conjunction with the most
directly comparable GAAP financial measure.
A reconciliation table of the most comparable GAAP financial measure to each
non-GAAP financial measure used in this press release is included at the end of
this release. A reconciliation of non-GAAP guidance measures to corresponding
GAAP measures is not available on a forward-looking basis without unreasonable
effort due to the uncertainty regarding, and the potential variability of,
reconciling items that may be incurred in the future, such as stock-based
compensation and related employer payroll taxes, the effect of which may be
significant.
Available Information
Palantir uses its Investor Relations website at https://investors.palantir.com
as a means of disclosing material non-public information and for complying with
its disclosure obligations under Regulation FD. Accordingly, investors should
monitor Palantir’s Investor Relations website, in addition to following our
press releases, SEC filings, public conference calls, and webcasts.
About Palantir Technologies Inc.
Foundational software of tomorrow. Delivered today. Additional information is
available at https://www.palantir.com.
Contacts
Investor Relations
investors@palantir.com
Media
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Palantir Technologies Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Nine
Months Months
Ended Ended
Septem… Septem…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Reven… $ 2,313,… $ 1,181,0… $ 5,881,… $ 3,068,6…
Cost
of 383,286 207,307 895,954 573,211
reven…
Gross 1,930,… 973,785 4,985,… 2,495,4…
profit
Opera…
expen…
Sales
and 396,711 274,636 1,055,… 754,733
marke…
Resea…
and 219,720 144,191 573,214 414,123
devel…
Gener…
and 228,849 161,702 606,012 487,956
admin…
Total
opera… 845,280 580,529 2,234,… 1,656,8…
expen…
Income
from 1,084,… 393,256 2,750,… 838,621
opera…
Inter… 88,936 59,762 232,835 166,458
income
Other
income -25,780 27,483 134,265 30,906
(expe…
net
Income
before
provi… 1,148,… 480,501 3,117,… 1,035,9…
for
income
taxes
Provi…
for 13,560 3,753 41,142 12,948
income
taxes
Net 1,134,… 476,748 3,076,… 1,023,0…
income
Less:
Net
income
attri… 6,429 1,149 16,376 6,680
to
nonco…
inter…
Net
income
attri… $ 1,128,… $ 475,599 $ 3,060,… $ 1,016,3…
to
common
stock…
Earni…
per
share
attri… $ 0.47 $ 0.20 $ 1.28 $ 0.43
to
common
stock…
basic
Earni…
per
share
attri… $ 0.44 $ 0.18 $ 1.19 $ 0.40
to
common
stock…
dilut…
Weigh…
shares
of
common
stock
outst…
used
in
compu… 2,405,… 2,377,1… 2,399,… 2,363,7…
earni…
per
share
attri…
to
common
stock…
basic
Weigh…
shares
of
common
stock
outst…
used
in
compu… 2,573,… 2,571,0… 2,571,… 2,562,3…
earni…
per
share
attri…
to
common
stock…
dilut…
—————
(1) Includes stock-based compensation expense as follows (in thousands):
Three Nine
Months Months
Ended Ended
Septem… Septemb…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Cost of $ 37,892 $ 15,789 $ 86,687 $ 45,778
revenue
Sales
and 123,477 63,148 306,440 171,701
market…
Resear…
and 65,214 35,049 159,952 98,951
develo…
General
and 92,306 58,332 232,611 171,198
admini…
Total
stock-… $ 318,889 $ 172,318 $ 785,690 $ 487,628
compen…
Palantir Technologies Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
Assets As of September As of December
Current 30, 31,
assets: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash $ 3,619,414 $ 1,423,796
equivalents
Marketable 6,942,117 5,753,247
securities
Accounts
receivable, 1,883,498 1,042,065
net
Prepaid
expenses and 322,741 139,066
other current
assets
Total current 12,767,770 8,358,174
assets
Property and 65,000 51,960
equipment, net
Operating
lease 244,938 200,105
right-of-use
assets
Other assets 335,268 290,153
Total assets $ 13,412,976 $ 8,900,392
Liabilities
and Equity
Current
liabilities:
Accounts
payable,
accrued $ 623,888 $ 409,552
liabilities,
and other
Deferred 661,255 408,963
revenue
Customer 512,573 357,066
deposits
Total current 1,797,716 1,175,581
liabilities
Deferred
revenue, 32,660 46,216
noncurrent
Customer
deposits, 268 18
noncurrent
Operating
lease 225,267 183,474
liabilities,
noncurrent
Other
noncurrent 11,965 7,092
liabilities
Total 2,067,876 1,412,381
liabilities
Palantir's
stockholders’
equity:
Common stock 2,409 2,391
Additional
paid-in 11,739,968 10,933,325
capital
Accumulated
other
comprehensive -12,435 13,942
income
(loss), net
Accumulated -501,961 -3,562,390
deficit
Total
Palantir's 11,227,981 7,387,268
stockholders’
equity
Noncontrolling 117,119 100,743
interests
Total equity 11,345,100 7,488,011
Total
liabilities $ 13,412,976 $ 8,900,392
and equity
Palantir Technologies Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months Ended
September 30,
Operating activities 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 3,076,805 $ 1,023,037
Adjustments to
reconcile net income
to
net cash provided by
operating
activities:
Depreciation and 22,031 19,127
amortization
Stock-based 785,690 487,628
compensation
Unrealized and
realized (gain) loss
from -34,997 5,005
marketable
securities, net
Other operating -97,557 -16,220
activities
Changes in operating
assets and
liabilities:
Accounts receivable, -843,438 -422,977
net
Prepaid expenses and -162,110 50,343
other assets
Accounts payable and 204,240 90,582
accrued liabilities
Contract liabilities 396,996 160,154
Other liabilities -27,758 -39,501
Net cash provided by
operating 3,319,902 1,357,178
activities
Investing activities
Purchases of
property and -29,969 -20,610
equipment
Purchases of
marketable -5,137,861 -6,091,513
securities
Proceeds from sales
and redemption of 4,079,225 4,360,327
marketable
securities
Other investing -50,000 -73,924
activities
Net cash used in -1,138,605 -1,825,720
investing activities
Financing activities
Proceeds from the
exercise of common 22,606 120,839
stock options
Other financing -2,491 -136,851
activities
Net cash provided by
(used in) financing 20,115 -16,012
activities
Effect of foreign
exchange on cash,
cash -20 9,444
equivalents, and
restricted cash
Net increase
(decrease) in cash,
cash 2,201,392 -475,110
equivalents, and
restricted cash
Cash, cash
equivalents, and
restricted 1,451,425 2,119,936
cash - beginning of
period
Cash, cash
equivalents, and $ 3,652,817 $ 1,644,826
restricted
cash - end of period
Palantir Technologies Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)
Non-GAAP Reconciliations
(in thousands, except percentages and per share amounts)
Adjusted Income from Operations and Adjusted Operating Margin
Three Nine
Mont… Mont…
Ended Ended
Sept… Sept…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Inc…
from $ 1,08… $ 393,… $ 2,75… $ 838,…
ope…
Add:
sto… 318,… 172,… 785,… 487,…
com…
Add:
emp…
pay…
tax… 23,1… 34,9… 68,3… 129,…
rel…
to
sto…
com…
Adj…
inc… $ 1,42… $ 600,… $ 3,60… $ 1,45…
from
ope…
Adj…
ope… 62 % 51 % 61 % 47 %
mar…
Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin
Three Months Ended
September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net cash provided by
operating $ 1,204,570 $ 507,664
activities
Add: cash paid for
employer payroll
taxes related to 19,521 38,990
stock-based
compensation
Less: purchases of
property and -8,014 -6,792
equipment
Adjusted free cash flow $ 1,216,077 $ 539,862
Adjusted free cash flow 53 % 46 %
margin
Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended
September 30,
2026
────────────────────────────────────────────────────────────────────────────
Net income attributable to common $ 1,128,012
stockholders
Add: net income attributable to 6,429
noncontrolling interests
Less: interest income -88,936
Add: other (income) expense, net 25,780
Add: provision for income taxes 13,560
Add: depreciation and amortization 7,046
Add: stock-based compensation 318,889
Add: employer payroll taxes related to 23,106
stock-based compensation
Adjusted EBITDA $ 1,433,886
Adjusted EBITDA margin 62 %
Palantir Technologies Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)
Adjusted Net Income Attributable to Common Stockholders and Adjusted Earnings
Per Share, Diluted
Three Months Ended
September 30,
2026
──────────────────────────────────────────────────────────────────────────────
Net income attributable to common $ 1,128,012
stockholders
Add: stock-based compensation 318,889
Add: employer payroll taxes related to
stock-based 23,106
compensation
Less: income tax effects and adjustments(1) -327,660
Adjusted net income attributable to common $ 1,142,347
stockholders
Weighted-average shares used in computing
adjusted 2,573,926
earnings per share, diluted
Adjusted earnings per share, diluted $ 0.44
————
(1) Income tax effect is based on an estimated long-term annual effective tax
rate of 23.0% for the period presented.