Palantir Technologies Inc (NASDAQ:PLTR) stock fell 12.19% (As on May 6, 11:21:56 AM UTC-4, Source: Google Finance) after the company boosted its revenue guidance and reported earnings that met expectations. Net income rose to about $214 million, or 8 cents per share, from roughly $105.5 million, or 4 cents per share, in the year-ago quarter. U.S revenues jumped 55% to $628 million. The defense technology company said that its commercial revenues grew 71% from a year ago to $255 million with U.S. commercial revenue up 71%, to $255 million, while its government segment sales jumped 45% to $373 million. Palantir said it closed 139 deals totaling at least $1 million during the period, 51 of which topped at least $5 million. Palantir said 31 deals exceeded $10 million. The company was recently awarded a $30 million contract with ICE to surveil immigrants, though the deal has prompted concerns over potential rights violations. Palantir was also awarded a $178 million contract by the US army in March to develop AI military trucks.
Further, Business highlights in the quarter included the integration of xAI Corp.’s Grok-2 and Grok-2 Vision models into Palantir’s Artificial Intelligence Platform, enhancing capabilities across Logic, Automate, Pipeline Builder and other AIP tools with advanced language and vision support. The quarter also saw Palantir announcing a strategic partnership with Databricks Inc.
PLTR in the first quarter of FY25 has reported the adjusted earnings per share of 13 cents, which met the analysts’ estimates for the adjusted earnings per share of 13 cents, according to LSEG consensus estimates. The company had reported the adjusted revenue growth of 39 percent to $884 million in the first quarter of FY25, beating the analysts’ estimates for revenue of $863 million.
The company, which provides AI software and technology solutions for governments and corporations, also hiked its full-year revenue outlook to between $3.89 billion and $3.90 billion. During its last earnings report, Palantir projected that full-year revenues would range between $3.74 billion and $3.76 billion. The company expects revenues to range between $934 million and $938 million in the current quarter. The company also boosted its adjusted free cash flow outlook for the year to between $1.6 billion and $1.8 billion. Adjusted income for operations is expected to range between $1.711 billion and $1.723 billion. Palantir now expects its commercial business to grow 68% this year, reaping $1.18 billion in revenue in 2025, up from the firm’s prior estimate of $1.08 billion, or 54% growth, for that segment.