https://x.com/PalantirTech/status/1919483667660824781
Palantir Technologies reported strong first-quarter 2025 results on Monday, with revenue growing 39% year over year to $884 million, beating Wall Street’s expectation of $863 million. Adjusted earnings per share met estimates at $0.13. Despite the positive financial performance, Palantir shares fell about 9% in after-hours trading.
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The decline can be attributed to the company’s high valuation, as it was trading at 238 times estimated earnings for the coming year before the earnings release. CEO Alex Karp expressed optimism about the company’s growth, stating, “We are in the middle of a tectonic shift in the adoption of our software.” Palantir’s commercial revenues grew 71% from a year ago to $255 million, while its government segment sales jumped 45% to $373 million.
Strong growth, investor caution
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The company also raised its full-year revenue outlook to between $3.89 billion and $3.90 billion, up from its previous projection of $3.74 billion to $3.76 billion. Palantir expects revenues to range between $934 million and $938 million in the current quarter. Karp attributed Palantir’s government sector growth to greater adoption of its tools, noting that demand for large language models and supporting software has “turned into a stampede” and “a ravenous whirlwind of adoption.”
Palantir closed 139 deals totaling at least $1 million during the period, with 51 deals exceeding $5 million and 31 deals exceeding $10 million.
The company also generated $310 million in cash from its operations during the quarter, up 139% from the previous year. Despite the impressive report, long-term investors should consider a dollar-cost-averaging strategy given the stock’s high valuation. Palantir’s stock has soared 64% this year, benefiting from key defense contracts, and is the best performer in the S&P 500.
