: Palantir Technologies raised its annual revenue forecast for the third time on Monday, betting on strong government spending and growing demand for its software services from companies seeking to adopt generative AI technology.

Shares of the data analytics company rose about 13 percent in extended trading.

Palantir has benefited from the rise of GenAI technology, as more companies turn to its AI platform, used for testing, debugging code and evaluating AI-related scenarios.

The company now forecasts 2024 revenue of between $2.805 billion and $2.809 billion, up from its prior expectations of $2.742 billion to $2.750 billion.

The company is one of the biggest beneficiaries of the rise in AI-related stocks, with its shares up more than 140% year to date. It was added to the S&P 500 in September and has outperformed the index’s 20 percent gain since the start of the year.

It also raised its annual forecast range for adjusted operating profit to around $1.05 billion to $1.06 billion. It previously forecast between $966 million and $974 million.

“Revenue growth, which is driven by demand for AI, is reflected in the bottom line,” Chief Financial Officer David Glazer told Reuters.

While businesses increasingly use Palantir’s services, much of its revenue comes from government spending.

Palantir, whose services include providing governments with software to visualize military positions, reported a 40 percent jump in its third-quarter U.S. government revenue, which accounted for more than 44 percent of total revenue of $725.5 million.

Analysts on average expected total revenue of $701.1 million, according to data compiled by LSEG.

Still, Palantir’s commercial business, which includes enterprise sales, will likely surpass government business as soon as next year, said Gil Luria, head of technology research at DA Davidson.

“Government agencies take much longer to make decisions, while commercial customers can make much faster software purchasing decisions, which is what we are seeing now.”

The company also expects fourth-quarter revenue to beat estimates.