- Palantir Technologies (PLTR) stock fell nearly 9% to $113.30 in after-hours trading despite Q1 earnings of $0.13 per share meeting consensus and revenues of $883.9 million, up 39.4% year-over-year, beating the $862.2 million estimate.
- U.S. commercial revenue soared 71% to $255 million and government revenue rose 45% to $373 million, with the company projecting Q2 revenues of $934-$938 million and FY25 revenues of $3.890-$3.902 billion, exceeding consensus estimates.
- CEO Alexander C. Karp highlighted a Rule of 40 score of 83% and a 55% U.S. revenue increase, with U.S. commercial revenue hitting a $1 billion run rate, as Palantir raises FY25 revenue growth guidance to 36% and U.S. commercial growth to 68%.
Palantir Technologies (PLTR) saw its stock slide nearly 9% to $113.30 in after-hours trading on Monday, despite a strong Q1 performance and optimistic guidance that underscored its pivotal role in AI-driven enterprise solutions. The company reported Q1 earnings per share of $0.13, meeting the consensus estimate of $0.13, while revenues climbed 39.4% year-over-year to $883.9 million, exceeding the $862.2 million consensus. Robust growth in the U.S. market drove results, with commercial revenue surging 71% year-over-year and 19% quarter-over-quarter to $255 million, and government revenue increasing 45% year-over-year and 9% quarter-over-quarter to $373 million, reflecting Palantir’s deepening penetration in both sectors.
Looking ahead, Palantir issued bullish guidance, projecting Q2 revenues of $934-$938 million, surpassing the $899.44 million consensus, and raising FY25 revenue expectations to $3.890-$3.902 billion, above the $3.75 billion consensus. The company also boosted its adjusted income from operations outlook to $1.711-$1.723 billion, signaling strong confidence in sustained profitability. CEO Alexander C. Karp emphasized the company’s leadership in the AI era, noting a Rule of 40 score of 83% and a 55% year-over-year U.S. revenue increase, with U.S. commercial revenue achieving a $1 billion annual run rate and projected to grow 68% in FY25. Karp highlighted a “tectonic shift” in software adoption, positioning Palantir as the operating system for modern enterprises, with total revenue growth forecasted at 36% for the year.
The after-hours stock drop, despite these strong metrics, suggests market dynamics such as profit-taking or lofty investor expectations may be at play, given Palantir’s high valuation and the stock’s 64% year-to-date run-up. The company’s AI and data analytics platforms, widely adopted in defense, healthcare, and commercial sectors, continue to drive its growth, capitalizing on the increasing demand for real-time, data-driven decision-making tools. However, the 9% decline indicates potential investor caution, possibly tied to broader tech sector volatility or concerns about maintaining such rapid growth. As Palantir navigates these challenges, its ability to deliver on its ambitious guidance and sustain its AI leadership will be critical to regaining market momentum.
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