Palantir Technologies shares spiked by more than 11% in premarket U.S. trading on Tuesday, after the data analytics company posted a fourth-quarter beat on revenue and profit and issued a stronger-than-expected outlook for 2026.

Palantir, which provides software to government agencies and businesses to help manage and synthesize data, reported adjusted earnings per share of $0.25 for the final three months of last year, beating analysts’ estimates of $0.23. Revenue rose by 70% versus a year ago to a record $1.41 billion, ahead of the $1.32 billion consensus, as demand for its artificial intelligence-enhanced tools fueled rapid growth in its government and commercial businesses.

Palantir forecast current-quarter 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 in a statement that the company is seeing operating leverage from advances in AI.

The stock has fallen more than 16% so far this year, reflecting a wider downturn in software stocks. But, over the past 12 months, Palantir has gained more than 75%  The company has positioned its platform to help customers deploy AI in areas such as logistics and defense-related applications, although its involvement with the U.S. government’s ongoing immigration enforcement drive has sparked criticism from former employees and lawmakers.

In the U.S. alone, 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.

Palantir added that it closed 180 deals of at least $1 million during the quarter, including 61 deals of $10 million or more.

“While software investors remain tough to satisfy these days, we remain confident that accelerating revenue growth and expanding margins into 2026 will attract greater interest as market sentiment stabilizes,” analysts at Loop Capital including Mark Schappel said in a note.