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Serving San Jose, California (Santa Clara County)Vol. 1, No. 8
Business

Palantir's sales nearly double as business customers pass the U.S. government for the first time

The data-software company, founded in Palo Alto, says AI demand drove third-quarter revenue to $2.3 billion and raised its forecast for the year.

Business desk
Monday, Nov. 2, 2026In the Monday, Nov. 2, 2026 edition
Illustration of a laptop on a wooden desk showing a generic analytics dashboard with charts, a network diagram and a world map, next to a notebook, a coffee mug and a plant.
AI-generated illustration; not a photo of Palantir’s software.  The numbers and dates on the screen are illustrative only and are not Palantir’s figures.  Palantir’s sales nearly doubled last quarter as more U.S. businesses bought its AI data software. — AI-generated illustration

Palantir Technologies said Monday that its sales nearly doubled in the three months ending Sept. 30, as more businesses bought its AI software.  The company reported revenue of $2.313 billion, up 96% from $1.181 billion a year earlier, according to its quarterly earnings release.

For the first time in the company's history, its sales to U.S. businesses were bigger than its sales to the U.S. government.  U.S. commercial revenue rose 148% to $984 million.  U.S. government revenue rose 96% to $953 million.

What Palantir sells

Palantir was founded in Palo Alto in 2003 and for years was known mainly for software used by spy agencies and the military.  Its products pull an organization's scattered data, such as inventory records, sensor readings and customer orders, into one place where workers can search and act on it.

Its newer product, called AIP, lets customers plug AI models into that data.  Instead of a general chatbot like ChatGPT that knows nothing about a company, AIP gives the AI access to the company's own records and rules, so it can help with tasks like scheduling factory work or flagging problem shipments.

The Sovereign AI moment is purpose-built for Palantir.

By "sovereign AI," Karp means governments and companies running AI systems they control themselves, rather than relying entirely on outside AI providers.

Profits and forecast

Palantir said it earned $1.128 billion in the quarter, or 44 cents a share, compared with $475.6 million a year earlier.  It had $10.4 billion in cash and U.S. Treasury securities on Sept. 30.

The company raised its forecast for 2026 revenue to between $8.530 billion and $8.534 billion, which it said would be 91% growth over 2025.  It expects fourth-quarter revenue of $2.649 billion to $2.653 billion.

Why it matters

Palantir is one of the clearest tests of whether businesses will pay for AI software, not just the chips that run it.  Many investors have worried that AI tools would hurt traditional software companies.  Palantir's results suggest that, at least for now, companies are spending heavily to put AI to work on their own data.

Source:  Palantir Technologies Q3 2026 earnings release, Nov. 2, 2026.

Drafted by AI from the linked public source. Approved by a Daily News Editor.

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