Key Stats for PLTR Stock
- Today’s Price Change: -8%
- Current Share Price: $114
- 52-Week High: $125
- Analysts’ Price Target: $87
What Happened?
Palantir Technologies (PLTR) stock is down over 8% today despite reporting first-quarter earnings that generally exceeded Wall Street’s expectations.
The AI software company reported adjusted earnings per share of $0.13, matching analyst estimates, while revenue came in at $884 million, which was a small beat compared to the $862 million that analysts expected.
Palantir delivered impressive growth metrics, with commercial revenues surging 71% year-over-year to $255 million and government segment sales jumping 45% to $373 million.
Overall revenue grew 39% compared to the year-ago period, while net income rose to $214 million from $105.5 million a year earlier.
Palantir also raised its full-year revenue outlook to between $3.89 billion and $3.90 billion, up from its previous guidance of $3.74 billion to $3.76 billion.
See Palantir’s full Q1 earnings transcript (It’s free) >>>
What the Market Is Telling Us
The sell-off in PLTR stock despite strong results and raised guidance suggests that investors may have been expecting even more impressive numbers or they have concerns about the stock’s valuation.
Palantir stock has been one of the S&P 500’s best performers in 2025, with shares up 64% year-to-date prior to this earnings release. This outperformance has enabled Palantir to beat the broader technology sector during a challenging market environment.
The market reaction may reflect a classic “buy the rumor, sell the news” scenario, where outstanding results were already priced into the stock’s significant run-up.
CEO Alex Karp’s comments that the company is in the “middle of a tectonic shift in the adoption” of its software and that demand for its AI capabilities has “turned into a stampede” highlight the company’s strong positioning. However, the company currently trades at 70x forward revenue, which leaves the company little room for error.
Despite the decline, Palantir stock remains well-positioned in the defense and AI sectors, with significant government contracts and growing commercial adoption.
During the quarter, it closed 139 deals totaling at least $1 million, 51 exceeding $5 million, and 31 topping $10 million, demonstrating robust enterprise demand for its solutions.
Palantir also increased its adjusted free cash flow outlook for the year to between $1.6 billion and $1.8 billion.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
