Palantir Technologies has reported fourth-quarter revenue of $1.41bn, beating Wall Street expectations of $1.33bn, as the company continues to benefit from federal contracts linked to the Trump administration’s immigration crackdown. The Denver-based firm, which specialises in surveillance and analytics software, posted earnings per share of $0.25, also ahead of the forecast $0.23. Its shares rose approximately 8% in after-hours trading following the announcement.
Revenue from government contracts grew 66% year on year to $570m, with the US Department of Defense remaining Palantir’s largest client. The company also works with the Department of Homeland Security and Immigration and Customs Enforcement (ICE). In 2024, ICE awarded Palantir a nearly $30m contract to build ImmigrationOS, a system that aggregates data from government databases to assist with immigration enforcement.
Chief executive Alex Karp described the results as “one of the truly iconic performances in the history of corporate performance” during an earnings call. He defended the company’s role in supporting US government operations, many of which he said could not be discussed publicly. Karp argued that Palantir’s products require compliance with the Fourth Amendment, which protects against unreasonable searches and seizures.
However, data privacy advocates have criticised the firm. Will Owen, communications director at the Surveillance Technology Oversight Project, said: “Palantir tools are ICE’s digital henchmen. Their revenue may be up thanks to Trump, but no one is buying that they hold ICE accountable.” Reports from 404 Media and Wired have highlighted additional tools, including Elite (Enhanced Leads Identification & Targeting for Enforcement), which provides a map of potential deportation targets and a confidence score on their current address, reportedly drawing on Department of Health and Human Services data.
Palantir has denied allegations that it is building a master surveillance database. In a blog post, the company stated: “Palantir is not working on any master database project to unify databases across federal agencies. … Palantir has not proposed the US government build a ‘master list’ for the surveillance of citizens.” The firm described claims about the Elite tool as misleading, saying it is used for prioritised enforcement rather than mass surveillance.
