Palantir Posts Record Revenue Amid Controversial ICE Contracts, Defying Wall Street Forecasts

Palantir Technologies Inc. reported blockbuster fourth-quarter earnings on Monday, shattering analyst forecasts as its government business—including controversial contracts with immigration agencies—continues to drive explosive growth.

The Denver-based data-mining and surveillance specialist posted revenue of $1.41 billion for the quarter ending December 2025, handily beating the $1.33 billion Wall Street consensus. Earnings per share came in at $0.25, above the expected $0.23. The company's shares surged approximately 8% in after-hours trading following the announcement.

Government revenue, which constitutes the bulk of Palantir's business, jumped 66% year-over-year to $570 million. Federal contracts nearly doubled in 2025, exceeding $970 million, with the Department of Defense remaining its largest U.S. customer. A significant portion also flows from the Department of Homeland Security (DHS) and its sub-agency, Immigration and Customs Enforcement (ICE).

CEO Alex Karp hailed the results as "one of the truly iconic performances in the history of corporate performance" on an earnings call. In a shareholder letter, he noted the $1.4 billion quarterly revenue marked a 70% increase from the same period a year prior.

"We achieved this while providing critical support for some of the most intricate and vital operations undertaken by the U.S. government," Karp stated, adding that such work was "highly motivating" for the company's employees.

Background & Analysis: Palantir's financial success is inextricably linked to the immigration enforcement priorities of the Trump administration. Following the passage of major homeland security funding legislation—dubbed by the former president as a "big, beautiful bill"—agencies like ICE received budgets swollen by billions, part of which funded expanded detention capabilities and new technology contracts. Palantir has been a key beneficiary, securing a nearly $30 million contract to build "ImmigrationOS," a system designed to streamline access to immigrant data across government databases.

Karp forcefully defended the company's work, arguing in a CNBC interview that Palantir's platforms enforce compliance with the Fourth Amendment. "If you are critical of ICE, you should be out there protesting for more Palantir," he claimed, insisting the company's technology ensures lawful and ethical data handling.

However, privacy advocates and watchdog groups remain deeply skeptical. Recent reports from outlets like 404 Media and Wired have detailed tools like "Enhanced Leads Identification & Targeting for Enforcement (ELITE)," which creates maps and dossiers of potential deportation targets using data from sources including Medicaid records.

Palantir has denied building a "master database" for citizen surveillance and called media characterizations of ELITE "misleading," stating it is used to locate individuals with final removal orders or serious criminal charges.

Reactions & Commentary:

• David Chen, Tech Policy Analyst at The Brookings Institution: "Palantir's earnings are a stark indicator of how national security and immigration policy have become dominant growth vectors for the tech sector. The financial performance is undeniable, but it raises profound questions about the normalization of mass surveillance infrastructure within domestic agencies."
• Maria Rodriguez, Immigration Attorney & Advocate: "This isn't just about software. It's about profiting from a system that tears families apart. Palantir's 'confidence scores' and dossiers are built on data that is often flawed, leading to wrongful detentions. Celebrating record revenue while this happens is morally bankrupt." [Emotional/Sharp]
• General (Ret.) Mark Foster, Former Pentagon Advisor: "The capability Palantir provides to fuse and analyze data is a force multiplier for national security. Their work with DOD is vital. The focus on their ICE work, while a legitimate debate, overlooks their critical role in protecting troops and supporting legitimate law enforcement objectives within the bounds of the law."
• Priya Sharma, Data Ethics Researcher, MIT: "Karp's Fourth Amendment argument is a technical sleight of hand. Building the tool doesn't absolve them of how it's used. When you design a system specifically for high-volume immigration enforcement, you are architecting the policy outcome, not just providing neutral 'infrastructure.'"