Anthropic Q3 revenue slows to $17 billion as IPO odds dip

Anthropic reported third-quarter revenue of $17 billion, representing a 50% increase quarter-over-quarter. However, the figure shows signs of growth deceleration compared to previous quarters. The company was reportedly cash-flow positive in the quarter, excluding share-based compensation. Approximately 5% to 7% of revenue comes from distillation, where competitors extract knowledge from Anthropic's models. In response, Anthropic published a blog post on October 12, 2026, detailing efforts to strengthen defenses against distillation attacks by making the reasoning process invisible to users. Market odds for an Anthropic IPO by the end of November have dropped to 52%. Some investors are considering a valuation cut from $2 trillion to $1.5 trillion due to the growth slowdown. The launch of Opus 5.5 is seen as a potential factor to re-accelerate momentum. One observer suggested Anthropic should have released its Q3 numbers earlier to manage expectations, arguing that the visible slowdown is now negatively impacting IPO prospects and valuation.