Palantir Falls About 7.6% Premarket as Slower Contract Growth Overshadows a 96% Revenue Jump

Shares of Palantir Technologies (NASDAQ: PLTR) fell in premarket trading on Tuesday, November 3, 2026, after the data analytics company reported third-quarter results that topped Wall Street's estimates and raised its full-year forecast. The stock traded at about $164.85 at 7:12 a.m. ET, according to Yahoo Finance data, down roughly 7.6% from Monday's close of $178.34.

The shares had already fallen about 3.1% during Monday's regular session, before the results were released after the closing bell, from Friday's close of $184.11.

Revenue nearly doubles

Palantir said in its earnings release that revenue for the quarter ended September 30 rose 96% from a year earlier and 20% from the prior quarter to $2.313 billion. It was the first time quarterly revenue had passed $2 billion. Revenue in the same quarter of 2025 was $1.181 billion.

The company's U.S. business drove most of the growth:

• U.S. revenue rose 119% year over year to $1.937 billion.
• U.S. commercial revenue rose 148% to $984 million, up 29% from the second quarter.
• U.S. government revenue rose 96% to $953 million.

It was the first time in Palantir's history that U.S. commercial revenue exceeded U.S. government revenue, the company said. CNBC reported that U.S. commercial revenue has more than quintupled over the last two years.

Net income attributable to common stockholders was $1.128 billion, or 44 cents per diluted share, compared with $475.6 million, or 18 cents per share, a year earlier. Adjusted earnings were also 44 cents per share. Adjusted operating income was $1.427 billion, a 62% margin, and adjusted free cash flow was $1.216 billion. Palantir ended the quarter with $10.4 billion in cash, cash equivalents and U.S. Treasury securities.

Raised guidance

For the fourth quarter, Palantir forecast revenue of $2.649 billion to $2.653 billion and adjusted operating income of $1.640 billion to $1.644 billion. For all of 2026, it raised its revenue forecast to $8.530 billion to $8.534 billion, which the company said represents growth of about 91%.

It also raised its full-year U.S. commercial revenue forecast to more than $3.559 billion, or growth of at least 143%, and lifted its adjusted free cash flow forecast to $4.8 billion to $5.0 billion. CNBC noted that the company had raised its U.S. commercial outlook to $3.42 billion a quarter earlier.

Contract value in focus

Total contract value, or TCV, a measure of the lifetime value of deals signed during a quarter, was $2.918 billion, up 6% from a year earlier. U.S. commercial TCV was $1.463 billion, up 11%. Investing.com reported that analysts flagged the TCV figure, noting that its growth rate had been 49% in the second quarter.

Analysts at Vital Knowledge wrote in a note cited by Investing.com that "the headline income/cash flow statement figures are great," but that "in the glass-half-empty mindset that tech finds itself in, people may walk away fairly neutral (or even modestly underwhelmed given some of the TCV details)."

Palantir said it closed 212 deals worth at least $1 million during the quarter, including 107 worth at least $5 million and 64 worth at least $10 million. Remaining deal value for U.S. commercial customers was $6.517 billion, up 79% from a year earlier.

What management said

Chief Executive Alex Karp said in the release that "the Sovereign AI movement is imposing the most dramatic dichotomy between haves and have nots that I have witnessed in 30 years of business." In an interview with CNBC, he said: "I don't believe anyone's had consistent results like this in the history of software AI, ever."

Context

Palantir's report came during a period of heavy selling in technology and AI-linked shares. Investing.com noted that AI-exposed stocks have swung in recent weeks on concerns about the sustainability of large, debt- and equity-funded spending on data centers and chips. Apple, which also reported after Monday's close, was lower in extended trading as well, according to CNBC.

Premarket prices can change significantly before the regular session opens at 9:30 a.m. ET, and trading volume before the open is typically lighter than during regular hours.