Shares of Palantir Technologies (NYSE: PLTR) were firmly in rally mode on Tuesday, defying the overall market downtrend and spiking as much as 16.3%. As of 10:28 a.m. ET, the stock was still up 14.7%.

The catalyst that sent the machine learning software and data mining specialist higher was the company's quarterly financial report, which far exceeded expectations, leading to a surprise profit.

For the fourth quarter, Palantir generated revenue to $509.1 million, up 18% year over year, fueled by strong government revenue, which climbed 23%. This helped drive positive net income, the first time the company has achieved profitability according to generally accepted accounting principles (GAAP). This resulted in earnings per share (EPS) of $0.01 and adjusted EPS of $0.04. Analysts' consensus estimates were calling for revenue of $502.6 million and adjusted EPS of $0.03, so the company sailed past investor expectations. 

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Source Fool.com