Shares of Palantir Technologies surged 6.9% after reporting a jump in quarterly sales, fueled by increased U.S. defense spending. The company, with a market value of $24.4 billion, saw a 66% rise in government revenue to $570 million in Q4, exceeding analysts’ expectations of $1.33 billion in total sales.

Palantir predicts first-quarter sales exceeding estimates, with a significant sales increase in 2026 due to government contracts. Despite a 1,700% rise in stock price over three years, concerns remain over the stock’s high valuation, trading at a forward P/E ratio of 131.

CEO Alex Karp defended Palantir’s surveillance technology, ensuring safeguards against government overreach. Amid scrutiny over ICE contracts, some firms like Capgemini are distancing themselves from government deals due to reputational and governance risks.

Read more at Yahoo Finance: Palantir rallies after bumper quarter fueled by US defense spending