Palantir Technologies reported stronger-than-expected earnings for the third quarter of 2026, with total revenue reaching $2.31 billion, surpassing Wall Street estimates of $2.18 billion. The company’s net income more than doubled from the prior year, hitting $1.13 billion, or 44 cents per share, compared with $476 million and 18 cents per share in Q3 2025. Despite this success, Palantir’s shares fell almost 3% during after-hours trading following the announcement.

A key highlight of the quarter was Palantir's U.S. commercial revenue, which surged 148% year-over-year to $984 million, surpassing U.S. government revenue for the first time. Government revenue rose by 96% to $953 million during the same period. This shift signals growing adoption of Palantir’s artificial intelligence tools by private sector companies, marking a significant milestone in the company’s transition from primarily government contracts to commercial applications.

Looking ahead, Palantir raised its full-year guidance, predicting U.S. commercial revenue will exceed $3.56 billion, up from the previous forecast of $3.42 billion. The company projects $2.65 billion in total revenue for Q4 2026 and expects to hit $8.53 billion in revenue for the full year. CEO Alex Karp attributed the company’s momentum to the strong demand for AI-driven software and emphasized that Palantir’s growth has occurred without traditional sales teams.

Karp also reiterated his stance on AI industry challenges, advocating for the nationalization of AI labs to better manage risks and liability involved with the technology’s rapid expansion. His comments come amid increasing regulatory scrutiny and concerns about AI safety, including warnings issued at a recent White House meeting attended by major tech executives. Karp stressed the inevitability of AI’s impact, urging stakeholders to prepare for ongoing political and technological shifts driven by the sector’s growth.