Despite a strong quarter, Palantir Technologies faced a 12% stock decline post-earnings, nearing its biggest drop since May 7, 2024. For Q1 2025, Palantir reported adjusted earnings per share of 13 cents, matching Wall Street expectations, with revenue increasing 39% to $884 million, surpassing forecasts of $863 million.
CEO Alex Karp highlighted a ‘tectonic shift’ in software adoption, raising full-year guidance for total revenue growth to 36% and U.S. commercial revenue growth to 68%. While U.S. sales surged 55% year-over-year, international commercial revenue growth stalled, declining 5% due to challenges in Europe.
Palantir projects second-quarter revenue between $934 million and $938 million, exceeding the consensus estimate of $899.1 million. The company also raised its full-year 2025 revenue forecast to $3.89 billion to $3.902 billion.
Despite robust performance, Palantir’s high valuation, trading at 232.56x forward earnings, raises concerns about sustainability. Analysts have adjusted their price targets; Wedbush raised its target to $140 from $120, maintaining an outperform rating, while Mizuho modestly increased its target to $94 from $80, keeping an underperform rating.
— new from TheStreet