Anthropic told prospective investors on Wednesday, Oct. 14, that third-quarter revenue reached $16.8 billion and that it was profitable on an adjusted basis. Revenue rose about 45% quarter over quarter, from $11.6 billion in the second quarter. The disclosure came weeks before a planned November initial public offering that could value the company at up to $2 trillion.

Chief Executive Dario Amodei and Chief Financial Officer Krishna Rao met investors at the company's San Francisco headquarters, where Anthropic presented its quarterly figures. Some attendees left optimistic about revenue growth and the path to profitability. The company handed out hats to attendees, some bearing the word “thinking.”

What Changed

AI-generated summary, reviewed by an editor. More on our AI guidelines.

The slowdown

Quarterly revenue gains shrank from about $6.9 billion in the second quarter to about $5.2 billion in the third. Growth slowed from about 147% between the first and second quarters of 2026 to about 45% in the July-to-September quarter. The latest figures fell short of some investors' hopes.

Annualized revenue projects a recent sales pace over a full year. Research firm SemiAnalysis estimates annualized revenue at about $74 billion, up from about $65 billion in late July. Some backers had expected more than $100 billion by the end of 2026.

Analysts who met company executives earlier this week separately estimated that the annual revenue run rate could reach $110 billion by year-end.

Adjusted profit

Anthropic said the third quarter was its second consecutive quarter of adjusted profitability. Its adjusted operating margin was 11%, the share of revenue left after running costs on that basis. Anthropic has not said which costs its adjusted measure excludes. The company also said it was cash-flow positive during the quarter and generated $1.70 in revenue for every dollar spent on computing power.

The figures were presented privately to prospective investors, not in audited filings. The company has not published the results and declined to comment.

Anthropic's draft IPO prospectus showed a $42 billion net loss in 2025 under standard accounting. About $34 billion of that loss came from accounting charges tied to past fundraising. Its operating loss excluding those writedowns exceeded $8 billion. Anthropic's 2025 full-year revenue of nearly $4.6 billion was less than its first-quarter 2026 revenue of $4.7 billion. The company has committed at least $518 billion over a decade for cloud services, computing and infrastructure.

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The listing

Some prospective investors put Anthropic's fair value at $1.8 trillion to $2 trillion. Its last private fundraising in May brought in $65 billion at a $965 billion post-money valuation.

On the day of the meeting, the S&P 500 fell more than 1%, its first decline of that size in 53 sessions, on worries about the AI trade. JPMorgan's Stephanie Aliaga said the size of Anthropic's potential market would be a key figure in its IPO paperwork.

Anthropic confidentially submitted its draft registration statement to the Securities and Exchange Commission on June 1. The document remains unpublished. The listing is planned for after the Nov. 3 U.S. midterm elections, with marketing as early as the week of Nov. 9 and trading before Thanksgiving on Nov. 26. Plans remain fluid.

An unnamed early Anthropic backer expects shares to price at around $1.8 trillion and trade at a valuation of $2.3 trillion to $2.4 trillion. The investor, who has a financial stake in the company, told Fortune: “Anthropic can afford to slow down and still have huge value.”

Frequently Asked Questions

How much revenue did Anthropic report for the third quarter of 2026?

Anthropic told prospective investors on Oct. 14 that revenue for the July-to-September quarter reached $16.8 billion. That was up about 45% from $11.6 billion in the second quarter and up from $4.7 billion in the first quarter.

Is Anthropic profitable?

Only on an adjusted basis, by its own account. Anthropic said the third quarter was its second straight quarter of adjusted profitability, with an 11% adjusted operating margin, but it has not said which costs the measure excludes. Under standard accounting, its draft IPO prospectus showed a $42 billion net loss in 2025.

Why do the figures show slowing growth?

Revenue rose about 147% between the first and second quarters of 2026 but about 45% between the second and third. The dollar gain also shrank, from about $6.9 billion to about $5.2 billion, and the figures fell short of some investors' hopes.

What is Anthropic's annualized revenue?

Research firm SemiAnalysis estimates about $74 billion, up from about $65 billion in late July. Some backers had expected more than $100 billion by year-end, while analysts who met executives this week estimated the run rate could reach $110 billion.

When is Anthropic's IPO expected?

The listing is planned for after the Nov. 3 U.S. midterm elections, with marketing as early as the week of Nov. 9 and trading before Thanksgiving on Nov. 26. Plans remain fluid, and the draft registration statement filed confidentially on June 1 remains unpublished.

AI-generated summary, reviewed by an editor. More on our AI guidelines.

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Editor-in-Chief and founder of Implicator.ai. Former ARD correspondent and senior broadcast journalist with 10+ years covering tech. Writes daily briefings on policy and market developments. Based in San Francisco. E-mail: editor@implicator.ai