Palantir Q1 2025 Earnings Beat Expectations, Shares Drop Despite Revenue Upgrade to $2.69B
Palantir Technologies surpassed Q1 2025 earnings and revenue forecasts, driven by strong commercial growth, yet shares declined as investors reacted cautiously to the modest full-year revenue guidance increase.
Highlights from Palantir's Q1 2024 Financial Report
- Palantir Technologies exceeded analyst estimates for Q1 earnings and revenue, showcasing robust commercial segment expansion.
- Despite positive results, the stock declined over 6% in after-hours trading due to conservative full-year guidance that left some investors wanting more.
- The company adjusted its annual revenue forecast upward slightly, now projecting between $2.68 billion and $2.69 billion for 2024.
In the first quarter of 2024, Palantir Technologies (PLTR) delivered impressive financial performance, posting revenue of $634.34 million—a 21% increase compared to the same period last year—and net income of $105.53 million, marking a 17% rise year-over-year. Diluted earnings per share (EPS) reached 4 cents, a notable improvement from 1 cent in Q1 2023, exceeding analysts' expectations captured by Visible Alpha.
The company's commercial revenue surged 27% year-over-year to $299 million, outperforming the anticipated $290.4 million. Government revenue, which constitutes the bulk of Palantir's sales, climbed 16% to $335 million, with the U.S. government contributing $257 million.
While Palantir outpaced its Q1 outlook and analyst estimates, the modest increase in full-year revenue guidance—from a prior $2.65-$2.67 billion range to $2.68-$2.69 billion—prompted a negative market reaction. As a result, shares dipped 6.1% to $23.61 during extended trading on Monday.
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