Palantir's shares soared by 22% in after-hours trading following the company's projection of fiscal 2025 revenue between $3.74 billion and $3.76 billion, significantly exceeding analyst estimates of $3.52 billion.

The company anticipates that both first-quarter and annual revenues will surpass Wall Street expectations, with forecasts indicating revenues above the analyst consensus of $3.54 billion.

Over the past four quarters, Palantir has consistently outperformed revenue estimates, with more than 40% of its fourth-quarter sales coming from U.S. government contracts.

Palantir has advised its clients to avoid using AI models from the Chinese startup DeepSeek, citing national security concerns and emphasizing the importance of U.S. leadership in AI technology.

In a strategic shift, Palantir aims to reduce its reliance on government contracts, expecting a 54% growth in U.S. corporate revenue in 2025, which is projected to exceed $1.80 billion.

The demand for Palantir's AI platform, AIP, has surged as businesses increasingly seek generative AI technologies for applications such as code testing and debugging.

According to Chief Revenue Officer Ryan Taylor, expanded tariffs imposed by former President Trump may further enhance demand for Palantir's analytics services, particularly in supply chain and logistics management.

U.S. officials, including White House press secretary Karoline Leavitt, are currently investigating potential national security risks associated with DeepSeek's technology, which has led to a ban on its use by federal agencies.

In its latest earnings report, Palantir posted an adjusted earnings per share of 14 cents, surpassing analysts' expectations of 11 cents.

Analyst Gil Luria noted that Palantir's objectives align closely with the current U.S. administration, highlighting the company's strong partnerships with government entities.

For the upcoming March quarter, Palantir projects revenues between $858 million and $862 million, significantly higher than the consensus estimate of $797.85 million.

Co-founded by Peter Thiel, Palantir specializes in providing data analytics solutions, particularly to government entities, including software for military applications.