Palantir Shares Rise on Soaring Government Revenue, CEO Defends Surveillance Tech

Palantir Technologies (NYSE: PLTR) reported a 66% year-over-year surge in U.S. government revenue to $570 million for Q4 2025, driving total sales to $1.41 billion—above estimates—as CEO Alex Karp defended its surveillance tools amid backlash over ICE contracts. The company forecasts 2026 revenue of $7.18–$7.20 billion, a >60% increase from 2025, with Q1 2026 sales projected at $1.53–$1.54 billion versus a $1.32 billion consensus. Karp emphasized built-in safeguards like granular access controls and audit logs to prevent government overreach, though he avoided addressing protests tied to ICE’s January fatal shootings. Palantir holds a $30 million ICE contract for an immigration tracking system—the agency’s largest single award to the firm since 2011. Shares rose 6% in after-hours trading on February 2, 2026, despite a 15% monthly decline amid concerns over its 140.5x forward P/E ratio.