Palantir Technologies (NASDAQ: PLTR) reported first-quarter results that beat expectations and raised its full-year guidance, but shares fell more than 8% in pre-market on Tuesday as investors reacted to cautious sentiment following a sharp recent rally.
The company posted adjusted earnings of $0.13 per share on revenue of $884 million, in line with earnings expectations and above the $864.1 million revenue forecast. Growth was fueled by increasing enterprise demand for generative AI capabilities, as organizations continue to leverage Palantir’s platforms to manage, train, and deploy AI applications.
Palantir booked its highest-ever U.S. commercial total contract value (TCV) in the quarter at $810 million, marking a 183% year-over-year increase. Remaining deal value (RDV) for U.S. commercial clients rose 127% from a year ago to $2.32 billion. Customer count expanded 39% year-over-year and 8% from the previous quarter, reflecting broadening adoption across sectors.
For the second quarter, the company guided for adjusted income from operations between $401 million and $405 million on revenue of $934 to $938 million—well above consensus estimates of $899.1 million.
Palantir also lifted its full-year 2025 revenue outlook to a range of $3.89 billion to $3.90 billion, up from a prior forecast of $3.74 billion to $3.76 billion, and ahead of the consensus estimate of $3.75 billion.
Following the report, Mizuho Securities raised its price target on Palantir to $94 from $80 but maintained an Underperform rating, citing valuation concerns despite the upbeat forecast.
As of the latest update, Palantir Technologies (NASDAQ: PLTR) shares are down 8.19%, trading at $113.63.
David Kirakosyan is a seasoned financial journalist with nearly a decade of hands-on experience in covering the U.S. stock markets. Since 2016, he has written thousands of equity news articles, detailed market analyses, and investment insights for trusted platforms like Benzinga, Investing.com, and StreetInsider. David holds a Master of Science in Finance and is a Level 2 CFA® candidate, reflecting his deep commitment to financial expertise and ethical standards. His reporting combines real-world market experience with a strong academic foundation, helping readers make informed decisions backed by reliable information. Read Full Bio
