Palantir Tops Wall Street fourth quarter It is estimated that as more companies and the United States government competing to buy it AI tool.

Shares rose 5% after hours.

Here’s how the company compares to forecasts from the London Stock Exchange Group (LSEG):

• earnings per share: Adjusted 25 cents, expected 23 cents
• income: US$1.41 billion, expected US$1.33 billion

Revenue increased 70% from $827.5 million in the same period last year. For the fiscal year, the Denver-based company’s sales totaled $4.48 billion.

U.S. Government and Commercial segment revenues increased to $570 million and $507 million, respectively. Those results steadily beat expectations of analysts polled by FactSet.

CEO Alex Karp In an interview with CNBC’s Morgan Brennan, he called the results “hands down the best performance I’ve seen in technology over the past decade.”

“If you’re not spending your money on that, you’re not spending your money on the things that will keep the momentum going,” he added.

Looking ahead, the artificial intelligence software provider said it expects first-quarter revenue of $1.532 billion to $1.536 billion, well above the FactSet forecast of $1.32 billion. For fiscal 2026, the company forecast revenue in a range of $7.182 billion to $7.198 billion, beating FactSet’s estimate of $6.22 billion.

Palantir develops software and data tools that are sold to businesses and government agencies including the Department of Defense, the Internal Revenue Service and the Department of Homeland Security, and the company’s growth has been fueled by soaring demand for artificial intelligence systems and widespread enthusiasm from retail investors.

Karp noted that the U.S. government continues to adopt its tools, with the sector growing 66%.

“The United States has become more deadly, more assertive and more at odds with our adversaries and, frankly, with our allies,” he said.

Karp said demand for its products has been so strong and Palantir has been “so active in the U.S.” that it has delayed sales of new products to allies.

Palantir will host Earnings Conference Call Meet with analysts at 5 p.m. ET.

Most of the demand comes from the Department of Defense, Karp said. Last summer, the company signed a Contracts up to $10 billion Works with the U.S. Army to support its software and data needs. Palantir also signed $448 million deal In December, it accelerated shipbuilding production with the U.S. Navy.

Palantir has faced backlash in recent weeks for its work with the Department of Homeland Security and, more specifically, its U.S. Immigration and Customs Enforcement After federal agents shot and killed two protesters in Minneapolis.

“If you’re critical of ICE, you should stand up and protest more Palantir,” he told CNBC. “In fact, at the core of our product is a requirement for people to comply with Fourth Amendment data protections.”

Palantir’s U.S. commercial revenue more than doubled from last year, while the value of remaining U.S. commercial transactions increased 145% year over year to $4.38 billion. In the meantime, Palantir Announcing a partnership With leading artificial intelligence chip manufacturers NVIDIA.

Net income totaled more than $608 million, or 24 cents per share. The company reported a net profit of $79 million, or 3 cents a share, a year ago.

Investors set a high bar for Palantir’s earnings report. Last year, the stock, a favorite among retail investors, gained 81%. But some Wall Street analysts have expressed concerns about the stock’s high price-to-earnings ratio, which would put the stock down about 15% by 2026.

November, Short Sellers Michael Barry Revealed bets on software analytics firm and chipmaker Nvidia. At that time, Kapp. told CNBC This move is “Bat-Crazy” and shouted “Market Manipulation”.

Then, the stock wraps it worst month Within two years, investors were steering clear of AI stocks amid valuation concerns and bubble concerns.

in a Letter to shareholdersDespite growing pressure on AI companies to focus on fundamentals, Karp called Palantir’s profits “pure and unpretentious.”

The company’s commercial arm benefits from demand for software that provides structure for large language models, he added.

“Anything that lacks a passionate focus on the value these technological systems create—the mice cats actually catch—will eventually fade and be forgotten,” Karp writes.