Palantir shares (PLTR+22.41%) rose over 20% on Tuesday morning after the data analytics software platform reported third-quarter earnings and outlook well above Wall Street expectations.

The company's shares rose about 15% during premarket trading on Tuesday and topped 20% after the open. Palantir shares are up over 200% so far this year.

For the third quarter, Palantir reported revenue of $726 million – up 30% year over year and up 7% quarter over quarter. The company was expected to report revenue of $705 million for the quarter, according to analyst estimates from FactSet.FDS+1.19%). U.S. revenue was $499 million for the quarter – up 44% year-over-year and up 14% quarter-over-quarter.

“We absolutely obliterated this quarter, driven by continued AI demand that shows no signs of slowing down,” said Alex Karp, co-founder and CEO of Palantir a statement. “This is a US-led AI revolution that has taken off. The world will be divided between AI haves and have-nots. At Palantir, we want to empower winners.”

The company, which counts the U.S. government among its major customers, reported that U.S. government revenue increased 40% year-over-year to $320 million, while U.S. commercial revenue increased 54% year-over-year 179 million US dollars increased.

Palantir set fourth-quarter revenue expectations at $767 million to $771 million. For the full year, the company raised its revenue forecast to $2.805 billion to $2.809 billion.

In September, Palantir was added to the S&P 500, Karp said in a statement Letter to shareholders was “made possible by the strength of our business and the growing demand for our software.”