Palantir (PLTR) raised its annual revenue outlook on Monday, citing its rapidly expanding sales of AI software to US businesses.

Palantir now forecasts it will rake in 2025 revenue between $3.89 billion and $3.9 billion, up from its prior estimate of $3.75 billion. That prior outlook had already surpassed Wall Street’s projections when it was given by the company during its fourth quarter earnings results Feb. 3, sending the stock soaring.

Shares seesawed in after-hours trading Monday following the earnings release, rising as much as 5% and then falling into the red as of 4:10 p.m. ET.

The firm’s increasingly optimistic financial outlook for the year was driven by its US commercial segment, which sells software to medical providers like Mount Sinai and Cleveland Clinic, oil companies such as BP (BP) and Exxon (XOM), automakers such as Stellantis (STLA), and more.

Palantir’s US commercial revenue jumped 71% to $255 million in the first quarter, ahead of the $239 million projected by Wall Street analysts tracked by Bloomberg.

“We have a $1 billion run rate in US commercial now, which is the gold standard for when a company has really broken through,” CEO Alex Karp told Yahoo Finance’s Josh Lipton Monday.

Palantir now expects its commercial business to grow 68% this year, reaping $1.18 billion in revenue in 2025, up from the firm's prior estimate of $1.08 billion, or 54% growth, for that segment.

Palantir’s data analytics and AI software is also used by militaries, government agencies, and police departments to the chagrin of human rights advocates and critics. It’s used to do everything from war planning and surveillance to supply chain management.

Palantir’s first quarter US government sales soared ahead of expectations, with revenue from US government contracts jumping 45% to $373 million, more than the $358 million expected.

The company was recently awarded a $30 million contract with ICE to surveil immigrants, though the deal has prompted concerns over potential rights violations. Palantir was also awarded a $178 million contract by the US army in March to develop AI military trucks. Palantir’s role in AI-enabled warfare has also come under criticism throughout the years.

Palantir's overall revenue $884 million for the March period was ahead of the $863 million expected by Wall Street analysts, while its earnings per share of $0.13 were in line with estimates, according to Bloomberg data.

“We are very focused on making America more lethal and in a more efficient way. And we are succeeding,” Karp told Yahoo Finance.