Palantir reported increased demand from military and commercial customers. Shares jumped

Military and civilian AI developer Palantir beat Wall Street expectations for fourth-quarter revenue and earnings, and gave a strong outlook for 2026. The software, which can organize large amounts of data, is in demand by businesses and the U.S. government, CNBC writes. Shares of Palantir jumped 7% in evening trading after the earnings release.

Palantir's revenue rose 70% year-over-year to $1.41 billion, while Wall Street was expecting $1.33 billion, according to LSEG, CNBC reported. Adjusted earnings per share came in at $0.25 versus the projected $0.23. Net income increased more than 7.5 times to $608 million, or $0.24 per share.

CEO Alex Karp, in an interview with CNBC, called its quarterly results "by far the best results in the technology industry in the last decade."

For the full year 2025, Palantir has grown sales to $4.48 billion.

In the current quarter, the company expects revenue in the range of $1.532 to $1.536 billion - with a consensus forecast of $1.32 billion, notes CNBC. And for the full year 2026, management estimates sales will be between $7.182 billion and $7.198 billion. Analysts had forecast $6.22 billion.

Investors reacted positively to the publication of the statements: in extended trading Palantir's securities soared by 7%, after which they slowed down a bit. The shares ended Monday's main trades up 0.8%.

Palantir's business is positively affected by the rapid growth in demand for AI systems and broad support from private investors, CNBC writes. The company develops software and tools for working with data, which are supplied to both commercial clients and US government agencies. Its customers include the Department of Defense, the Internal Revenue Service and the Interior Department. Quarterly revenue from orders from the U.S. public sector grew by 66% to $570 million, confidently exceeding analysts' estimates, the channel notes.

"America has become more lethal, more confident, it has become even more different from our adversaries - and frankly, from our allies," Karp told CNBC. He emphasized that the Pentagon remains the company's primary source of demand. This summer, Palantir signed a contract with the U.S. Army worth up to $10 billion - to support software and data operations, CNBC recalled.

Sales to U.S. commercial companies more than doubled year over year and the total value of commercial contracts grew 145% to $4.38 billion, Palantir's CEO said. The company also partnered with leading AI chip maker Nvidia during the reporting period.

Since November, when Palantir released its third-quarter report, the software developer's securities have gone into a bearish trend and lost 29% of their value, Bloomberg writes. The stock had fallen 17% in value since the start of 2026 by the close of trading Monday. Yet they still trade with a P/E ratio, which reflects the ratio of price to projected earnings, at about 141 - one of the highest multiples within the S&P 500 index, the agency notes.

The stock may be affected by investor concerns about the payback period for investments in the AI sector, analysts said earlier. Palantir has also faced criticism in recent weeks over the company's interaction with the U.S. Immigration and Customs Enforcement (ICE), whose officers shot and killed two Americans in Minneapolis last month, CNBC wrote. The Department of Homeland Security acquired Palantir's app called ELITE, which provides ICE officers in the detention and deportation unit with operational information, including migrant residential addresses found through AI, Bloomberg explains.

This article was AI-translated and verified by a human editor