Palantir's US commercial revenue grew 148% year over year in the third quarter and overtook its US government revenue for the first time, chief executive Alex Karp said.

The quarter itself beat expectations. Revenue was $2.31B against $2.23B expected, and earnings per share were $0.44, $0.02 better than expected. The raised outlook matters more, because it is management's own forecast for the rest of the year.

Palantir now expects full-year 2026 revenue of $8.530bn to $8.534bn and adjusted income from operations of $5.245bn to $5.249bn. It lifted adjusted free cash flow guidance to between $4.8bn and $5.0bn. For US commercial revenue it expects more than $3.559bn for the year, a growth rate of at least 143%.

The shift in the mix is the real news. Palantir has long depended on federal budgets. It is now growing mainly by rolling out AI systems inside companies. A raise across revenue, operating income and cash flow is a firmer signal than a single beat.

For the fourth quarter, Palantir expects revenue of $2.649bn to $2.653bn and adjusted income from operations of $1.640bn to $1.644bn.

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