May 4 (Reuters) - Palantir Technologies raised its annual revenue forecast on Monday and beat estimates for quarterly results, a sign of rising demand for its data analytics software from the U.S. government and commercial clients.
The growing use of artificial intelligence tools in modern warfare has boosted demand for software platforms developed by companies such as Palantir that help defense departments analyze data and make real-time targeting decisions.
Palantir now expects fiscal 2026 revenue
to be between $7.65 billion and $7.66 billion, compared with its prior expectations of $7.18 billion to $7.20 billion.
The company also raised its annual expectations for U.S. commercial revenue to more than $3.22 billion, compared with its earlier outlook of $3.14 billion.
Palantir's U.S. government segment sells data analytics and AI software to defense and intelligence agencies, while its U.S. commercial business provides enterprise AI platforms that help corporations integrate data and automate operational decisions.
"The United States remains the center, the constant core, of our business. And that business is erupting," CEO Alex Karp said in a letter to shareholders on Monday.
Revenue of $1.63 billion for the quarter ended March 31 exceeded LSEG-compiled analysts' average estimate of $1.54 billion.
The company said its revenue from U.S. commercial customers jumped 133% to $595 million, while revenue from U.S. government customers rose 84% to $687 million.
The company reported adjusted earnings per share of 33 cents in the first quarter, beating estimates of 28 cents. Shares of the company were up nearly 1% in extended trading.
Palantir's Maven AI system will become an official program of record for the Pentagon, Reuters reported in March, locking in long-term use of the company's weapons-targeting technology across the U.S. military.
Last month, the company secured a $300 million contract with the U.S. Department of Agriculture.
The company forecast second-quarter revenue of $1.797 billion to $1.801 billion, above estimates of $1.68 billion.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Sriraj Kalluvila)
