Investing.com -- Palantir Technologies Inc (NASDAQ: PLTR) on Monday posted a fourth-quarter beat on revenue and profit and issued a stronger-than-expected outlook for 2026, amid rapid growth in its U.S. business as demand for its data and AI software expands. Shares rose about 7% in extended trading.

Palantir, which provides data analytics software to government agencies and businesses, reported Q4 adjusted EPS of $0.25, beating analysts’ estimates of $0.23. Revenue rose to $1.41 billion, ahead of the $1.32 billion consensus.

Palantir forecast Q1 2026 revenue of $1.532 billion to $1.536 billion, compared with expectations of about $1.33 billion. It sees revenue of $7.182 billion to $7.198 billion for full year, well above the $6.28 billion consensus.

Chief Executive Alex Karp said the company is seeing operating leverage from advances in artificial intelligence.

“Last quarter, our U.S. revenue grew 93% year-over-year and U.S. commercial revenue grew 137% year-over-year,” Karp said in a statement, adding that Palantir expects 2026 revenue growth of 61%.

The stock has fallen more than 16% so far this year, despite gaining more than 75% over the past 12 months, as investor enthusiasm around AI has driven volatility across the sector. The company has positioned its platform to help customers deploy AI in areas such as logistics and defense-related applications

U.S. revenue grew 93% from a year earlier to $1.08 billion, driven by strength in both commercial and government customers. U.S. commercial revenue climbed 137% to $507 million, while U.S. government revenue increased 66% to $570 million.

Total revenue rose 70% year over year and 19% sequentially. The company said it closed 180 deals of at least $1 million during the quarter, including 61 deals of $10 million or more.