Palantir shares rise by 11 percent after remarkably strong sales expectations

Shares of Palantir Technologies rose by eleven percent after the close on Monday, after the company surprised investors with a significant increase in its revenue forecast.

Despite a difficult start to the year, the American data giant now looks to benefit from growing demand for AI-driven defense and government software.

Palantir expects billion-dollar sales growth

Palantir forecasts fiscal 2026 revenue of more than $7.19 billion, an increase of 61 percent over the previous year. That is almost a billion more than the average analyst expectation of $6.27 billion.

Revenue expectations for the current quarter are also above estimates at $1.53 billion. In the fourth quarter, Palantir achieved revenue growth of 70 percent, to $1.41 billion. Earnings per share amounted to 25 dollar cents, also better than the expected 23 cents.

AI and defense ensure breakthrough

Palantir, which generates the majority of its revenue from US government contracts, is benefiting from the increasing use of artificial intelligence in the defense sector. According to CTO Shyam Sankar, the use of AI platform Maven in the US military is “at an all-time high”. The system helps, among other things, identify targets on the battlefield.

In addition, the company reported strong results in the US government and commercial branches: 570 million dollars in revenue from government services (expected: 521 million), and 507 million from commercial deals (expected: 478 million).

Controversial reputation remains a subject of debate

Despite its financial success, Palantir remains under fire for its role in controversial government projects. The company has been supplying technology to immigration services such as ICE for years. Last month, the agency’s practices were again brought into question after two demonstrators were shot dead by officers at a protest in Minneapolis.

CEO Alex Karp defended Palantir’s role in a striking shareholder letter. In it he stated that the software platform “prevents unconstitutional intrusion into the private lives of citizens”. However, exactly how this happens remained unclear.

Price gain after major correction

Palantir shares closed Monday at $147.77, but had lost 17 percent so far this year. Since the peak in November, the share has even fallen by 29 percent. The significant price jump after trading therefore offers a welcome breather.