Palantir reported its strongest quarter yet, with Q3 2026 revenue hitting $2.31 billion, up 96% year over year and beating analyst expectations of $2.18 billion. Adjusted earnings per share came in at 44 cents versus forecasts of 41 cents. For the first time, U.S. commercial revenue of $984 million surpassed U.S. government revenue of $953 million. The company raised full-year revenue guidance to a range of $8.53 billion to $8.534 billion.
Despite the strong results, Palantir shares dropped about 10% as Wall Street sold off major software AI stocks following midterm election results. CEO Alex Karp challenged investors during the November 2 earnings call, arguing that Wall Street is profiting from AI that is not performing the way they expect. He pointed to industry buyers as the real market for Palantir's services. The company's adjusted operating margin reached 62%.
The U.S. Department of Justice launched a Super Intelligence Task Force, using President Trump's preferred term for artificial intelligence. Led by Associate Attorney General Stanley Woodward and Associate Deputy Attorney General Stephen Weiss, the effort aims to protect critical AI technologies from foreign state actors, transnational criminal organizations, and fraud. Attorney General Todd Blanche said the task force will ensure these technologies serve the American people.
OpenAI is moving to acquire Pierre Computer Company, a maker of open-source coding tools, to bolster its Codex developer platform. The deal would add tools like Trees, Diffs, Highlights, and Code Storage. All Pierre projects will remain open-source after the acquisition, and the deal still requires regulatory approval before closing.
Research from Axiom Math shows AI agents can tackle complex math problems with minimal supervision. The team used AI agents to formalize the Stacks Project in Lean, covering algebraic geometry across roughly 16 million lines of code. Terence Tao supported the effort, which aims to provide a verified mathematical foundation for AI agents and developers. Separately, researchers found that removing thought supervision from LLM agents had little impact on performance unless the actions themselves did not reveal the underlying reasoning.
UK authorities are sounding the alarm on AI-powered cyber threats. The National Cyber Security Centre warns that AI-driven attacks on critical infrastructure are highly likely by 2028, making hacking faster and cheaper for less skilled attackers. The agency handled over 200 cyber incidents involving critical infrastructure in the past year, most linked to state actors. Auto Trader, meanwhile, frames its AI-powered platform shift as a growth opportunity, saying AI assistants can help reach customers and that the data and analytics platform will fund itself over time.
On the business and legal front, Alcon, the production company behind Blade Runner 2049, settled its lawsuit against Warner Bros. Discovery. The case stemmed from Tesla and Elon Musk using an AI-generated image resembling the film in a robotaxi promotion. Procter & Gamble is among the companies now carefully measuring whether AI marketing spending actually delivers returns. In the UK, Sovereign AI backed Potential Sciences, a startup using physics-based AI to design new chemicals and medicines, claiming its method could cut AI calculation costs by 100 times.
Key Takeaways
- Palantir's Q3 2026 revenue reached $2.31 billion, up 96% year over year, surpassing analyst expectations of $2.18 billion.
- Palantir raised full-year revenue guidance to $8.53 billion to $8.534 billion and posted a 62% adjusted operating margin.
- U.S. commercial revenue of $984 million exceeded U.S. government revenue of $953 million for the first time.
- The U.S. DOJ launched a Super Intelligence Task Force to protect AI technologies from state actors, criminals, and fraud.
- OpenAI is acquiring Pierre Computer Company to strengthen its Codex developer tools, keeping all projects open-source.
- Axiom Math used AI agents to formalize the Stacks Project in Lean across 16 million lines of code, supported by Terence Tao.
- The UK's National Cyber Security Centre warns that AI-powered cyberattacks on critical infrastructure are highly likely by 2028.
- Alcon settled its AI lawsuit with Warner Bros. Discovery, which originated from Tesla's use of an AI-generated Blade Runner 2049 image in a robotaxi promo.
- Research shows LLM agents need less thought supervision than commonly believed, unless actions do not reveal reasoning.
- Sovereign AI funded Potential Sciences, a UK startup using physics-based AI to design chemicals and medicines at 100x lower cost.
Palantir Drops 10% as Wall Street Sells Top Software AI Stocks
Palantir fell 10%, CrowdStrike fell 9%, and Okta fell 10% after midterm election results shifted Wall Street sentiment. Democrats won both chambers of Congress on November 3, and both parties had targeted AI data centers during the campaign. Palantir's Q3 2026 report showed strong results with revenue up 96% year over year to $2.31 billion. The NASDAQ Composite fell more than 5% and the S&P 500 fell more than 3%.
Palantir CEO Alex Karp Challenges Wall Street on AI Profits
CEO Alex Karp questioned how investors price AI during Palantir's Q3 earnings call on November 2. He said Wall Street investors are getting rich on AI that is not working the way they think. He believes the real market is in industry, where buyers need Palantir's services. Revenue reached $2.313 billion, up 96% year over year, and adjusted operating margin hit 62%. The company raised full-year revenue guidance to $8.53 billion to $8.534 billion.
Palantir Surpasses $2 Billion in Quarterly Revenue for First Time
Palantir reported third-quarter revenue of $2.31 billion on Monday, up 96% year over year and ahead of analyst expectations of $2.18 billion. Adjusted earnings per share came in at 44 cents against forecasts of 41 cents. For the first time, U.S. commercial revenue of $984 million exceeded U.S. government revenue of $953 million. The company raised its full-year revenue guidance and expects U.S. commercial revenue to exceed $3.559 billion for the year.
U.S. Justice Department Creates Super Intelligence Task Force
The U.S. Department of Justice is establishing a new AI task force called the Super Intelligence Task Force. It follows President Donald Trump's directive to call AI by the name super intelligence or SI. Attorney General Todd Blanche said the effort will ensure critical SI technologies serve the American people and are not manipulated by bad actors. The task force will guard against state-sponsored actors, transnational criminal organizations, and fraud.
US DOJ Launches Super Intelligence Task Force to Protect AI
The US Department of Justice announced the launch of a Super Intelligence Task Force led by Associate Attorney General Stanley Woodward and Associate Deputy Attorney General Stephen Weiss. The task force uses President Donald Trump's preferred term for artificial intelligence. Its goal is to ensure America's leadership in SI is not compromised by misuse from foreign state actors, transnational criminal organizations, and individuals engaged in fraud. The DOJ statement outlines these protective measures.
LLM agents may not need constant thought supervision
Researchers studied how training AI agents with teacher trajectories affects performance. They found that removing or changing thought supervision had little impact on student model results. Thought supervision only matters when the action does not reveal the thought information. This challenges the common practice of distilling full teacher trajectories for LLM agents.
Companies assess whether AI marketing spending delivers returns
Companies such as Procter & Gamble are measuring AI marketing results. They track how much money AI saves, how well ads perform, and how sales are affected. The focus is on determining whether AI investments in marketing are actually paying off.
Axiom Math uses AI agents to formalize algebraic geometry
Axiom Math used AI agents to formalize the Stacks Project in Lean, covering algebraic geometry. The team trained its own models and let agents work in parallel with loose structure. The project spans about 16 million lines of Lean code. Terence Tao supported the effort, which aims to give agents and developers a verified math foundation.
Blade Runner 2049 producer settles AI lawsuit with Warner Bros
Alcon, the production company behind Blade Runner 2049, settled its lawsuit against Warner Bros. Discovery. The case began after Tesla and Elon Musk used an AI-generated image resembling the film in a robotaxi promotion. Alcon argued the image linked the movie to Musk. Warner Bros. was dismissed from direct copyright claims, and both sides did not comment.
Auto Trader frames AI as growth opportunity
Auto Trader reassured investors about its shift to an AI-powered platform. The company said AI assistants can help reach customers. Its AI data and analytics platform will fund itself over time while maintaining long-term margins. The update aimed to ease concerns about large transformation costs.
OpenAI to buy Pierre Computer to boost Codex developer tools
OpenAI plans to acquire Pierre Computer Company, a maker of open-source coding tools. The deal aims to strengthen the Codex platform with tools like Trees, Diffs, Highlights, and Code Storage. All Pierre projects will stay open-source after the acquisition. The deal still needs regulatory approval before it closes.
UK warns AI cyberattacks could hit critical infrastructure by 2028
The UK's National Cyber Security Centre says AI-powered cyberattacks on critical infrastructure are highly likely by 2028. It warns that AI makes hacking faster, cheaper, and easier for less skilled attackers. The agency handled over 200 cyber incidents involving critical infrastructure in the past year. Most of those were linked to state actors. Leaders are urged to modernize technology and security systems now.
Sovereign AI backs UK startup using AI to transform chemistry research
Potential Sciences, a British startup, received funding from Sovereign AI as part of an eight-figure raise. The company uses AI based on physics laws to design new chemicals and medicines. It claims its method could make AI calculations 100 times cheaper than current approaches. Other backers include Twin Path Ventures, Odyssey, and Patrick Collison. Sovereign AI is also offering compute access through the Isambard-AI supercomputer.
Sources
- Palantir Tumbles 10%, CrowdStrike Sinks 9% as Wall Street Dumps Software's AI Winners; Okta Drops 10%
- Palantir's CEO Just Said What Wall Street Doesn't Want to Hear About AI
- Palantir Tops $2B in Quarterly Revenue as Enterprise AI Demand Pushes Commercial Sales Past Government
- U.S. Justice Department assembles force to shield against foreign AI threats
- US DOJ launches Super Intelligence Task Force | MLex | Specialist news and analysis on legal risk and regulation
- Agents, Think Only When it Helps
- Is your AI marketing investment paying off? How to assess savings, ad performance and sales
- Axiom Math wants to keep AI slop out of mathematics
- ‘Blade Runner 2049’ Producer Settles AI Lawsuit Against Warner Bros.
- Auto Trader reframes AI as opportunity
- OpenAI to acquire developer tools firm Pierre to expand Codex capabilities
- UK Warns AI-Powered Cyberattacks Will Hack Critical Infrastructure By 2028
- Sovereign AI puts cash and compute behind UK startup using AI to redefine chemistry
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