(Reuters) -Palantir Technologies forecast fourth-quarter revenue above analysts’ estimates on Monday, as the rapid adoption of artificial intelligence boosts demand for its data analytics services from businesses and governments.

Shares of the company gained about 2% in extended trading.

The defense contractor raised its annual sales target for the third time this year, amid strong sales for its services that ease the transition to the complex, data-intensive technology.

Palantir, co-founded by tech billionaire Peter Thiel, expects fourth-quarter sales of between $1.327 billion and $1.331 billion, compared with analysts’ average estimate of $1.19 billion, according to data compiled by LSEG.

The company also raised its annual sales forecast to a range of $4.396 billion to $4.40 billion,

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