PLTR Q1 Earnings Call: AI-Driven U.S. Growth Lifts Palantir's Outlook Amid International Headwinds
Data-mining and analytics company Palantir (NYSE:PLTR) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 39.3% year on year to $883.9 million. The company expects next quarter's revenue to be around $936 million, close to analysts' estimates. Its non-GAAP profit of $0.13 per share was in line with analysts' consensus estimates.
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Palantir (PLTR) Q1 CY2025 Highlights:
Revenue: $883.9 million vs analyst estimates of $862.3 million (39.3% year-on-year growth, 2.5% beat)
Adjusted EPS: $0.13 vs analyst estimates of $0.13 (in line)
Adjusted Operating Income: $390.7 million vs analyst estimates of $361.1 million (44.2% margin, 8.2% beat)
The company lifted its revenue guidance for the full year to $3.9 billion at the midpoint from $3.75 billion, a 3.9% increase
Operating Margin: 19.9%, up from 12.8% in the same quarter last year
Free Cash Flow Margin: 41.9%, down from 62.5% in the previous quarter
Billings: $939.3 million at quarter end, up 52.2% year on year
Market Capitalization: $292.1 billion
StockStory's Take
Palantir's first quarter performance was primarily driven by rapid expansion in its U.S. commercial and government segments, as detailed by management on the earnings call. Chief Revenue Officer Ryan Taylor credited continued demand for Palantir's Artificial Intelligence Platform (AIP) in both enterprise and defense settings, noting that U.S. commercial revenue grew 71% year-over-year and U.S. government revenue rose 45%. Management highlighted the impact of larger and faster deal cycles, particularly in healthcare and financial services, and cited customer adoption stories from Walgreens and AIG as evidence of this momentum.
Looking ahead, management lifted its full-year revenue guidance and framed the company's outlook around sustained U.S. demand and ongoing AI adoption. CEO Alex Karp pointed to increased budget scrutiny and efficiency requirements within the U.S. government as potential sources of new opportunities, stating, "Palantir does exceptionally well when things are pentested. We like pressure on the system." However, management also acknowledged continued headwinds in international markets, particularly Europe, and reiterated its focus on scaling within the U.S. and allied nations.
Key Insights from Management's Remarks
Palantir's leadership emphasized that first quarter results were supported by accelerating U.S. business momentum, strong customer expansion, and the growing adoption of AI-driven enterprise automation. The following key themes emerged from management's remarks:
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