Anthropic Reports Revenue Growth Slowdown Ahead of $2 Trillion IPO Pitch

Anthropic reported $16.8 billion in revenue for the third quarter, a 50% increase, alongside a second straight adjusted profit and 11% operating margins. This marks a significant improvement from 2025, where the company generated roughly $0.63 in revenue for every $1 spent on compute, compared to $1.70 in the third quarter. Despite this, revenue growth has slowed compared to earlier this year, and forecasts for year-end revenue have been revised down by SemiAnalysis to roughly $74 billion. Pressures include large clients like Meta and Microsoft developing in-house models, a reduction in distillation revenue (5% to 7% of revenue), and a price war involving OpenAI and low-cost Chinese labs. Anthropic plans its IPO in November, targeting a valuation above $2 trillion, with Goldman Sachs and Morgan Stanley reportedly leading the offering.