What do "year over year" and "quarter over quarter" mean when a company reports earnings?

When Palantir reported on Monday, Nov 2, it said third-quarter 2026 revenue was $2.313 billion, up 96% year over year and up 20% quarter over quarter. Year over year (often written Y/Y or YoY) compares a quarter with the same quarter one year earlier. Here that is $2.313 billion against $1.181 billion in Q3 2025, which is close to double. Quarter over quarter (Q/Q, also called "sequential") compares it with the quarter right before, which here is Q2 2026.

Why do companies show both? Many businesses have busy and slow seasons. A retailer can earn a big part of its year in the holiday quarter, so comparing Q4 with Q3 can make growth look huge, and comparing the next Q1 with Q4 can look like a collapse. Comparing the same quarter a year apart takes most of that seasonal effect out. Quarter over quarter shows recent change faster, but it jumps around more. The math is the same for both: (this period minus the earlier period) divided by the earlier period, times 100. Keep in mind that a big growth number on its own doesn't tell you what a stock will do next. Palantir's revenue beat the $2.18 billion analysts expected (LSEG), yet its shares were down about 2% in after-hours trading on Monday.

A quick habit: whenever you see a growth percentage, check two things, what it is compared against and which period it covers. Have a question about reading earnings numbers? Ask it below. There are no silly questions here.

Sources: Palantir Q3 2026 earnings release (Nov 2, 2026); Reuters via Investing.com (Nov 2, 2026); CNBC after-hours movers (Nov 2, 2026); Investopedia "Year-Over-Year (YOY)" and "Quarter Over Quarter (Q/Q) Growth".