Palantir Technologies (NASDAQ: PLTR) raised its full-year 2025 revenue forecast to $3.89-$3.90 billion, up from the earlier estimate of $3.74-$3.76 billion. However, its Q1 results left much to be desired:

• EPS: $0.13, matching expectations.
• Revenue: $883.9 million, marking a 2.4% increase but below the estimated $862.8 million.
• Stock Reaction: Shares fell by 8% in after-hours trading.

Even with slight revenue beat driven by AI deployments and government defense contracts, investor expectations for more substantial growth were unmet. As analyst D.A. Davidson’s Gil Luria stated, “The only thing higher than the reported results were the expectations.”

Dive Deeper into the Earnings Call

For greater insights on Palantir’s performance and future strategies, including the approach to AI and government contracts, check out the earnings transcript for valuable details.

Palantir’s focus on its AI capabilities and government partnerships offers an optimistic growth outlook, yet investors should remain cautious and attentive to whether full-year projections are realized.