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3d ago

Palantir Shares Dip 9% Despite Strong Q1 Results and Raised 2025 Revenue Forecast

The analytics and AI firm exceeded revenue estimates and lifted its full-year outlook, but investor expectations led to after-hours stock volatility.

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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
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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, surpassing analyst estimates of $862.8 million, with adjusted earnings per share of $0.13 in line with expectations.
  • The company raised its full-year 2025 revenue guidance to $3.89–3.90 billion, up from a previous forecast of $3.74–3.76 billion, citing strong AI demand.
  • U.S. commercial revenue surged 71% year-over-year to $255 million, while government revenue grew 45% to $373 million, with the U.S. government accounting for over 42% of total revenue.
  • Despite positive financial results, Palantir's stock fell nearly 9% in after-hours trading, reflecting investor concerns over high valuation and lofty expectations.
  • CEO Alex Karp emphasized the company's leadership in AI adoption, highlighting its role in defense and enterprise AI solutions, including key contracts with the U.S. Army and NATO.