Palantir's revenue forecast exceeded Wall Street's expectations. What does this mean for the AI rally?

Artificial intelligence developer Palantir has raised its revenue forecast for the full year 2026 and exceeded Wall Street analysts’ expectations. In addition, the financial results reflected a significant shift in the company’s business: for the first time, its commercial division generated more revenue than its contracts with the U.S. government.

Palantir raised its annual revenue forecast to $8.53–8.534 billion. By comparison, analysts had predicted an average of $8.2 billion, according to Bloomberg. The company expects its commercial revenue in the U.S. to exceed $3.559 billion, which, according to Palantir’s calculations, represents a growth rate of at least 143%.

In the third quarter of 2026, Palantir increased its revenue by 96% year-over-year to $2.3 billion. Adjusted earnings per share were $0.44. For the fourth quarter, the company forecasts revenue of $2.649 billion to $2.653 billion and adjusted operating income of $1.64 billion to $1.644 billion.

In addition, in the third quarter, Palantir’s commercial revenue exceeded its government revenue for the first time: $984 million versus $953 million, as noted by MarketWatch. It described this as a new phase of growth for the company.

Palantir shares rose about 0.5% in after-hours trading following the release of its earnings report. Regular trading on November 2 ended with a 3.1% decline.

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This article was AI-translated and verified by a human editor