Palantir Technologies reported on Monday that third-quarter revenue increased by 96% year-on-year to $2.3 billion, exceeding last year's growth rate of 63% and revenue of $1.2 billion. The company has raised its full-year revenue forecast to $8.53 billion to $8.534 billion, with a median increase of about 91% year-on-year, which is higher than the previous quarter's highest forecast of $8.2 billion.

After the financial report was released, the stock began to rise in after-hours trading, and it increased by about 1.5% shortly after the data was published.

Quarterly performance shows that Palantir's adjusted earnings per share and GAAP's earnings per share are both $0.44. In contrast, the adjusted earnings per share for the third quarter of 2025 were $0.21, and GAAP's earnings per share were $0.18. Analysts previously estimated revenue to be $2.18 billion, with adjusted earnings per share at $0.41.

Palantir CEO Alex Karp described the company's performance in his quarterly letter to investors as "being an understatement to say it was extraordinary." He wrote that the company's growth rate of 96% is "absolutely astonishing." Palantir The previous revenue forecast ranged from $2.16 billion to $2.164 billion.

On the occasion of the quarterly performance release of Palantir, it coincided with a significant sell-off in some tech stocks last week, which also allowed the market to test the popularity of trading in AI. Karp did not hide the changes he observed, nor did he fail to mention how these changes might impact certain industries.

"Every industry in the world – from banks to insurance companies, hospitals, and even once-renowned law firms – will be reshaped or quickly left behind," writes Karp.

This software company is regarded as a barometer for whether AI software can be transformed into revenue growth in the public market. A few days before its latest financial report was released, Alphabet experienced its largest single-day decline in its 22-year history as a listed company. The disappointing market reactions from Amazon and Intel last week have exacerbated external concerns: according to S&P Global Research, AI related expenditures have approached $2 trillion in two years, but its returns are far behind investor expectations. Google's parent company, Alphabet, has seen its market value evaporate by $505 billion since it announced its third-quarter results last week, and Intel's stock price fell by about 29% last week. The Nasdaq Composite Index fell more than 1% on Monday and has dropped 4% over the past five days.

For Palantir, investors have been closely monitoring U.S. business revenue, considering it as evidence of whether companies and governments are willing to pay for AI software. This business revenue has increased by 148% to $984 million, compared to $397 million in the same period last year.

Moreover, this is the first time that U.S. commercial revenue has exceeded that of the U.S. government, reaching $984 million, while the U.S. government revenue was $953 million. U.S. government revenue increased by 96% year-on-year to $953 million, compared to $486 million in the same period last year.

At the same time, the total contract value increased by 6% to $2.9 billion; the value of business contracts in the United States increased by 11% to $1.5 billion.

For the current quarter, Palantir expects revenue to be around $2.64 billion to $2.65 billion, with a median growth of approximately 88% year-over-year. Analysts previously estimated revenue to be around $2.46 billion. The company has also raised its revenue guidance for the fiscal year 2026 to a year-over-year increase of 91%, and its guidance for U.S. business revenue to 143%.

Although Karp remains as optimistic this quarter as it was three months ago, the context in which Palantir operates is significantly different from that when it announced its second-quarter results in August. Similar to last quarter, this technology company, with a market value of $430 billion, stated in its quarterly report to investors that its performance “far exceeded market consensus expectations.”