Arya News - 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
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 analytics company said revenue derived from the U.S. government spiked 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, in part due to government contracts in 2026.
Shares of the company jumped 6% in extended trading.
Companies working with U.S. Immigration and Customs Enforcement (ICE) are attracting more scrutiny as Americans have turned solidly against ICE"s aggressive tactics following the fatal shootings of two U.S. 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 U.S. unit that has a contract with ICE after criticism from French lawmakers and others.
Denver-based Palantir has increasingly been 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 the best performing AI stocks, with shares gaining 1,700% over the last 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 constraints on government action and investigation through granular permissioning capabilities," Karp said in a letter to shareholders.
He said the company"s tech ensures that the "state and its agents can see only what ought to be seen, and functional audit logs, to ensnare both external and internal threats".
Shares are down more than 15% so far this month as Wall Street questions Palantir"s sky-high valuation, with a 12-month-forward price-to-earnings ratio of 140.5.
BIG REVENUE JUMP EXPECTED
The company, founded by tech billionaire Peter Thiel, with the CIA as one of its early backers, has boosted its sales with a litany of government contracts. It expects revenue between $7.18 billion and $7.20 billion in 2026, which would be more than a 60% increase from 2025.
Thiel was an early backer of President Donald Trump and has close ties with key Washington lawmakers, including Vice President JD Vance, whom he supported in a 2022 U.S. Senate race.
Palantir won a $30 million contract from the U.S. Immigration and Customs Enforcement in April to develop an operating system that identifies undocumented immigrants and tracks self-deportations, which as of June 3, was its largest single award from the agency among 46 federal contract actions since 2011.
"Freedom from unwarranted government surveillance... requires the construction of a technical system that is built to make possible oversight of its own use and limit, not expand, the material and information subject to access," Karp said.
Palantir forecast first-quarter sales between $1.53 billion and $1.54 billion, above an estimate of $1.32 billion, according to data compiled by LSEG.
Sales to U.S. businesses in 2026 are expected to grow at least 115% to more than $3.14 billion, accelerating from 109% growth in 2025.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Pooja Desai)