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Palantir Stock Drops 15% Following Strong Q1 Results and Raised Guidance

Despite robust revenue growth and upgraded forecasts, investors react to concerns over Palantir's high valuation and slowing international sales.

Overview

  • Palantir reported Q1 2025 revenue of $884 million, a 39% year-over-year increase, exceeding analyst expectations.
  • The company raised its full-year revenue guidance to up to $3.902 billion, reflecting confidence in its AI-driven software adoption.
  • U.S. commercial revenue surged 71% year-over-year, reaching a $1 billion annual run rate, while international corporate sales declined.
  • Shares fell up to 15% on Tuesday, the sharpest drop in nearly a year, as investors questioned its valuation multiples, which are among the highest in the S&P 500.
  • Analysts revised price targets for Palantir stock, with ratings ranging from underperform to outperform, highlighting mixed sentiment on its valuation sustainability.