Feb 2 (Reuters) – Palantir Technologies CEO Alex Karp defended the firm’s surveillance technology as it reported a big jump in sales on Monday, saying it has safeguards to prevent government overreach, without mentioning U.S. immigration enforcement efforts in Minnesota that have drawn widespread protests.
The data analysis company said revenue derived from the US government rose 66% in the fourth quarter from the year-ago period to $570 million. Total sales of $1.41 billion exceeded analysts’ estimates and the firm anticipates a big jump in sales, partly due to government contracts in 2026.
The company’s shares jumped 6% in extended trading.
Companies that work with US Immigration and Customs Enforcement (ICE) are attracting more scrutiny as Americans have turned firmly against ICE’s aggressive tactics following the fatal shootings of two US citizens in separate incidents in January. The company won a contract last year with ICE to develop surveillance systems for immigration enforcement.
Over the weekend, France’s CapGemini said it would sell a small US unit that has a contract with ICE after criticism from French lawmakers and others.
“Palantir’s government segment remains key to its success, with contracts becoming deeply embedded in federal systems,” said Emarketer analyst Jacob Bourne. “However, the company’s growth story increasingly depends on its commercial business.”
Denver-based Palantir is increasingly marketing military-grade AI tools to businesses through its artificial intelligence platform that helps companies integrate and develop the technology. It has emerged as one of AI’s best-performing stocks, with shares gaining 1,700% over the past three years.
“It should indeed be uncontroversial that the single most effective means of guarding against incursions into our private lives is to invest in the development of a technical platform that makes possible restrictions on government action and investigation through granular permission capabilities,” Karp said in a letter to shareholders.
He said that the company’s technology ensures that “the state and its agents can see only what should be seen, and functional audit logs, to capture both external and internal threats”.
Shares are down more than 15% so far this month as Wall Street questions Palantir’s lofty valuation, with a trailing 12-month price-to-earnings ratio of 140.5.
EXPECTATION LARGE JUMP IN
The company, founded by tech billionaire Peter Thiel, with the CIA as one of its first backers, boosted its sales with a litany of government contracts. Expect revenue between $7.18 billion and $7.20 billion in 2026, which would be more than a 60% increase from 2025.