Palantir earned a report $1.855 billion in income from the American authorities in 2025, the corporate mentioned in an earnings report that exceeded market expectations.
“We additionally did this whereas supporting, in vital method, among the most attention-grabbing, intricate, uncommon operations that the U.S. authorities has been concerned in, a lot of which we will’t touch upon, however have been the spotlight of final yr and have been extremely motivating to all of us at Palantir,” CEO Alex Karp mentioned on the investor name.
Palantir’s “motivating” enterprise with the U.S. authorities grew 55% year-over-year in 2025. In simply the final three months of the yr, Palantir made $570 million in income, with 66% progress year-over-year.
Most of that income was pushed by the corporate’s work for the Division of Protection, “in addition to accelerating momentum in civil businesses,” Palantir’s chief income officer Ryan Taylor mentioned.
Palantir’s shut relationship with no less than one in all these civil businesses has been on the coronary heart of rising public scrutiny, and that’s the Division of Homeland Safety.
The DHS has been counting on Palantir software program in its effort to turbocharge the Trump administration’s violent crackdown on immigrants. Final yr, the Immigration and Customs Enforcement company paid Palantir $60 million to construct a surveillance platform known as ImmigrationOS to trace self-deportations. Only a few months later, an Amnesty Worldwide report claimed that Palantir’s AI software program was used to focus on non-citizens who converse out in favor of Palestine.
ICE additionally makes use of Palantir tech to determine which neighborhoods to focus on for deportation raids. This system is known as ELITE (quick for Enhanced Lead Identification and Focusing on), and it was first unveiled in a 404 Media report final month and later corroborated in a DHS report on AI use instances within the Division.
The identical report additionally says that ICE makes use of Palantir AI to overview, summarize, and categorize suggestions despatched to the company.
Karp himself has been outspoken in favor of Trump’s immigration coverage, going as far as to say that he’ll use his “whole influence to make sure this country stays skeptical on migration.”
However Palantir’s partnership with Washington goes far past simply immigration. Many elements of the federal government depend on Palantir software program, most notably the Pentagon and notably by a $480 million deal for an AI-powered target identification system called Maven.
“Our weapons software program is in each fight state of affairs [that] I’m conscious of,” Karp mentioned. In truth, the CEO claims it’s been so efficient that his chief know-how officer Shyam Sankar’s “cellphone rings off the hook all day, and what they need from him is ‘how do I do that similar factor throughout authorities?’”
Karp’s regular retort to accusations that Palantir is aiding the administration in immoral (and a few argue illegal) actions is that the corporate’s software program is the one approach the general public can guarantee the federal government’s actions stay constitutional. He has used this reasoning when defending using Palantir software program in Caribbean boat strikes that many consultants consider to be war crimes, and he used it once more within the investor name to keep at bay fears of Palantir-driven mass surveillance.
Karp argues that Palantir is constructing know-how that can maintain the federal government accountable to the authorized limits of its surveillance, and be sure that “each establishment that makes use of our product is doing it inside conformity of the legislation and the ethics of America.”
However what occurs when these “legal guidelines and ethics” themselves grow to be questionable? Properly, Palantir continues to receives a commission.
Take Palantir’s work for the Division of Well being and Human Companies. For roughly the previous yr, Palantir has equipped AI instruments to assault authorities applications, contracts, and grants that don’t match with the Trump administration’s views on gender, surroundings, and race, in response to a not too long ago revealed report on AI use instances at HHS.
The Division has been utilizing Palantir AI to make it possible for all grants and jobs adjust to Trump’s government orders concentrating on DEI and “gender ideology.”
Since they have been signed a yr in the past, each government orders have led to many federal layoffs, together with some concentrating on non-DEI-related positions, and main cuts to funding for essential analysis. The Facilities for Illness Management and Prevention even needed to scrub any mentions of phrases like “gender,” “LGBT,” or “environmental justice,” retracting and even pausing some analysis submissions, whereas Trump cut greater than 1,600 analysis grants on the Nationwide Science Basis.
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