Artificial intelligence startup Anthropic reported a sharp increase in third-quarter revenue and achieved another quarter of profitability as it prepares for a highly anticipated initial public offering (IPO) in November, according to a Financial Times report published Wednesday.
Anthropic's revenue climbed nearly 50% to $16.8 billion during the third quarter of 2026, reflecting continued demand for its AI models and enterprise services. However, the growth rate represented a slowdown from earlier in the year and fell short of some investor expectations.
The company disclosed its financial performance during an investor presentation at its San Francisco headquarters on Wednesday. The gathering was reportedly aimed at strengthening investor confidence ahead of its planned November IPO, which could become one of the technology industry's most closely watched public listings.
According to the Financial Times, Anthropic achieved adjusted profitability for the second consecutive quarter, signaling progress toward establishing a sustainable business model despite substantial artificial intelligence infrastructure expenses.
The Claude AI developer also reported positive cash flow, highlighting improvements in operational efficiency. Anthropic generated approximately $1.70 in revenue for every $1 spent on computing resources during the quarter, suggesting stronger returns on its significant AI infrastructure investments.
Nevertheless, concerns remain about the company's slowing revenue momentum. Its annualized revenue is expected to remain below the closely monitored $100 billion threshold, raising questions about whether the broader AI industry's rapid expansion can sustain investor expectations.
Anthropic continues to face intense competition from OpenAI, the developer of ChatGPT, as both companies race to introduce increasingly sophisticated AI models and expand their presence in the enterprise artificial intelligence market.
Competitive pressure has intensified following OpenAI's release of its flagship GPT-6 Astra model, which has reportedly strengthened its position against Anthropic in recent months.
Meanwhile, Chinese AI developers are introducing lower-cost models offering capabilities comparable to those of leading American platforms, creating additional challenges for pricing strategies and revenue growth.
As Anthropic approaches its planned November stock market debut, investors are expected to closely examine its profitability, revenue trajectory, computing costs, and ability to maintain market share in an increasingly competitive global AI industry.


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