Anthropic's Q3 revenue hits $16.8B but growth slows ahead of planned November IPO
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Anthropic reported a third-quarter revenue of $16.8 billion, representing a 45% increase from the previous quarter and more than triple its full-year 2025 earnings. Despite this significant absolute growth, the company's expansion rate has slowed considerably compared to the explosive 140% surge seen in Q2. The firm achieved an adjusted operating margin of 11%, marking its second consecutive quarter of profitability and positive cash flow. However, anticipated declines in distillation revenue due to new countermeasures against model copying may weigh on current financial results. These figures have reportedly disappointed some investors ahead of Anthropic's planned November IPO, leading to revised valuation expectations below $1.5 trillion. The company faces a challenging market environment characterized by high inflation, rising borrowing costs, and intense competition from rivals like OpenAI. Although long-term AI adoption remains strong, short-term operational risks and public sentiment pose hurdles for the upcoming public listing.
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