Palantir Technologies Inc (NYSE:PLTR) boss Alex Karp said he expects the "disruption" caused by President Donald Trump and Elon Musk's so-called 'department of government efficiency' (DOGE) will provide a big boost to the company.
Shares in the data analytics group were up more than 23% at $103.18 in pre-market trading on Tuesday.
Palantir, set up by former Musk colleague Peter Thiel, has numerous contracts with US government departments, including with the US Army, Department of Defense and Customs & Border Protection.
Following the release of fourth-quarter earnings that beat Wall Street estimates, Karp made some bullish comments on the call with analysts and media.
"We love disruption, and whatever is good for America will be good for Americans and very good for Palantir," Karp said after being asked about DOGE.
"Disruption, at the end of the day, exposes things that aren't working," he said. "There will be ups and downs. There's a revolution. Some people are going to get their heads cut off.
"We're expecting to see really unexpected things and to win."
Palantir's chief technology officer also hailed the potential benefits of DOGE disruption for the company.
"Palantir's real competition is a lack of accountability in government," said CTO Shyam Sankar. "DOGE is going to bring meritocracy and transparency to government."
Led by Musk, DOGE operates as a free-roaming White House group created by Trump and tasked with trimming the size of government by cutting spending and reorganizing some federal agencies.
DOGE said it had canceled $420 million worth of federal government contracts in its first week.
It has sent a resignation offer to two million federal employees at the Office of Personnel Management, seeking an initial 30% staff cut, rising to a final reduction of up to 70%, CNN reported, while also abruptly suspending staff at the US Agency for International Development (USAid) following Trump's order to freeze most US foreign aid as part of his “America First” policy.