Palantir Beats Q1 Estimates, Raises Outlook, but Shares Slip After-Hours

? Palantir Beats Q1 Estimates, Raises Outlook, but Shares Slip After-Hours

Palantir Technologies Inc. (NYSE: PLTR) reported strong Q1 2025 results, outperforming Wall Street expectations on both earnings and revenue, yet its stock dipped in after-hours trading.

The company posted adjusted earnings of $0.13 per share, up from $0.08 a year earlier, aligning with analysts’ average forecast. Revenue surged 39% year-over-year to $883.86 million, exceeding the expected $862.83 million.

Despite these gains, shares fell 8.4% to $113.39 in late trading, even though they had risen 47.3% during the quarterand are up 64.3% year-to-date.

? Outlook Raised on AI Demand

CEO Alex Karp attributed the company’s growth to increased adoption of its AI-powered data analytics platforms, stating, “Palantir is on fire.”

Palantir raised its full-year revenue forecast to between $3.89 billion and $3.9 billion, up from its previous estimate of $3.74 billion to $3.76 billion. Analysts had projected $3.75 billion. For Q2, the company guided revenue of $934 million to $938 million, ahead of the consensus estimate of $899.4 million.

? Market Response and Concerns

While Palantir’s AI-driven momentum and potential Pentagon contracts have boosted investor sentiment, some analysts remain cautious about the company’s market cap, now exceeding $290 billion, surpassing traditional defense giants like Lockheed Martin and RTX.