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4mo ago

Palantir Raises 2025 Revenue Forecast Amid AI Surge, Shares Drop on Investor Expectations

The analytics firm reported a 39% revenue growth in Q1 and lifted its annual outlook, but its stock fell 9% as results failed to surpass lofty market expectations.

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Signage for Palantir is seen during the Association of the United States Army annual meeting and exposition at the Walter E. Washington Convention Center in Washington, U.S., October 14, 2024. REUTERS/Nathan Howard/File Photo
Palantir logo is seen in this illustration taken February 16, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

Overview

  • Palantir reported Q1 2025 revenue of $883.9 million, a 39% year-over-year increase, surpassing analyst estimates of $862.8 million.
  • The company raised its fiscal year 2025 revenue forecast to $3.89–$3.90 billion, up from $3.74–$3.76 billion, citing unprecedented demand for its AI platform.
  • Government revenue grew 45% and U.S. commercial revenue surged 71%, with the company closing 139 deals worth over $1 million each during the quarter.
  • Despite strong results, Palantir's stock dropped 9% in after-hours trading as investors were disappointed by in-line earnings and a modest revenue beat.
  • Analysts remain divided on the stock's valuation, with some highlighting its high multiple while others project significant long-term growth driven by AI adoption and defense contracts.