Palantir (PLTR) Falls After In-Line Earnings, Despite Strong AI-Fueled Outlook
Revenue rose 39% year over year to $884 million, beating the $863 million consensus, according to LSEG. Adjusted earnings per share were $0.13, matching forecasts.
Commercial revenue surged 71% to $255 million, while government contracts brought in $373 million, a 45% jump. U.S. revenue climbed 55% to $628 million.
Net income more than doubled to $214 million, or $0.08 per share, from $105.5 million, or $0.04 per share, a year earlier. Palantir closed 139 deals worth at least $1 million each during the quarter, including 31 deals over $10 million.
The company raised its full-year revenue forecast to between $3.89 billion and $3.90 billion, up from its earlier range of $3.74 billion to $3.76 billion. It expects Q2 revenue between $934 million and $938 million. Adjusted free cash flow is now projected at $1.6 billion to $1.8 billion, and adjusted operating income is forecast at $1.711 billion to $1.723 billion.
CEO Alex Karp said in a shareholder letter that Palantir is undergoing a "tectonic shift" in AI adoption, pointing to rising demand across commercial and defense sectors.
Despite the post-earnings dip, Palantir shares have climbed 64% year to date, outperforming most tech peers and topping the S&P 500, partly due to key defense deals and support from the Trump administration's Department of Government Efficiency.
Investors will be watching Q2 results and broader AI spending trends for signs of sustained momentum.
This article first appeared on GuruFocus.
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Los Angeles Times
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