Palantir raised its full-year outlook on strong demand for its AI software, but shares slipped in extended trading Monday as the company's results failed to impress.

Palantir Technologies raised its annual sales forecast on Monday, although its inline profit and a modest revenue beat disappointed investors who were expecting more from the AI-focused data and analytics firm,

The Denver-based company, which sells AI software to manage and analyze large amounts of data, logged higher profit and revenue.