Shares of Palantir (PLTR) fell in after-hours trading after the AI software company reported earnings for its first quarter of Fiscal Year 2025. Earnings per share came in at $0.13, which beat the consensus estimate of $0.08 per share.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Sales increased by 39.3% year-over-year, with revenue hitting $883.85 million. This beat analysts’ expectations by $21.72 million.
Interestingly, according to Main Street Data, Government revenue continues to be the main revenue driver of the company, as it continues to grow at a faster rate than commercial revenue. Indeed, it grew by 40.4% year-over-year to $455 million compared to 31% growth to $373 million for commercial. In addition, customer count continues to grow, coming in at 711 total customers for the quarter.
Outlook 2025
For Q2 2025, the company expects revenue to be between $934 million and $938 million, slightly above the $899.12 million consensus estimate. It also projects adjusted income from operations to be between $401 million and $405 million.
For the full year 2025, the company has raised its revenue guidance to a range of $3.890 billion to $3.902 billion, surpassing the $3.75 billion consensus. The firm expects U.S. commercial revenue to exceed $1.178 billion, a growth rate of at least 68%. The company also increased its adjusted income from operations guidance to between $1.711 billion and $1.723 billion and raised its adjusted free cash flow guidance to between $1.6 billion and $1.8 billion. Additionally, it continues to expect GAAP operating income and net income for each quarter of the year.
Is PLTR Stock a Buy?
Turning to Wall Street, analysts have a Hold consensus rating on PLTR stock based on two Buys, eight Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average PLTR price target of $89.17 per share implies 28% downside risk. However, it’s worth noting that estimates will likely change following today’s earnings report.
