Palantir Q1 Revenue Rises 39%, Shares Fall 8%

Palantir Technologies reported strong first-quarter results for 2025, with revenue rising 39% year-over-year to about $884 million, driven by accelerated growth in its U.S. commercial and government sectors. Despite beating revenue expectations and raising its full-year outlook to $3.89–$3.90 billion, shares dropped by around 6–9% in after-hours trading, suggesting investors had anticipated even stronger figures. U.S. commercial revenue surged 71% and government revenue increased 45%, while the number of customers grew by 39%. The company closed a record number of large contracts and expanded its AI capabilities, including new integrations and partnerships. Palantir raised its Q2 guidance above analyst forecasts, projecting continued robust growth. Analyst sentiment remains cautious, with a consensus 'Hold' rating and some estimates indicating the stock may be overvalued relative to projected fair value.