Palantir Technologies posted record quarterly revenue and net profit, the Wall Street Journal reported on Sunday.

Palantir's first-quarter revenue rose 85 percent from a year earlier to $1.63 billion. It marked the company's highest annual growth rate on record and topped market expectations. First-quarter net profit rose fourfold from a year earlier to $876 million. That also beat market expectations.

First-quarter revenue from U.S. government contracts rose 84 percent from a year earlier to $687 million. Revenue from U.S. corporate customers more than doubled from a year earlier to $595 million, but fell slightly short of market expectations.

Palantir has established itself as a company that supplies core software related to U.S. Department of Defense war planning, targeting selection and administrative functions.

The Maven Smart System, a military command-and-control system built by the U.S. Department of Defense, used Palantir software and was deployed in January for an operation in Venezuela and a war with Iran.

The Department of Defense also recently announced a contract to use models and tools from 8 AI companies in a classified environment. It is part of an effort to secure an alternative to Anthropic's Claude embedded in Maven. Anthropic was placed on the Department of Defense blacklist earlier this year over a contract dispute and is currently engaged in a legal battle.

Palantir also recently signed a $300 million contract with the Department of Agriculture and a five-year, $1 billion contract with the Department of Homeland Security. It has become more deeply involved in immigration enforcement work being pushed by the Trump administration.

Palantir raised its annual revenue forecast to $7.65 billion to $7.66 billion from $7.18 billion to $7.2 billion.