Palantir Reports 39% Revenue Growth, Raises 2025 Outlook

Palantir Technologies reported strong first-quarter 2025 earnings, with revenue up 39% year-over-year and U.S. commercial revenue surging 71%, surpassing Wall Street expectations. The company raised its full-year revenue guidance to nearly $3.9 billion, citing robust demand for its AI software, especially in U.S. commercial sectors such as healthcare and energy, as well as continued growth in government contracts. Despite this financial outperformance, Palantir’s stock slipped after earnings, reflecting high investor expectations and concerns over its lofty valuation. Analysts remain cautious, noting the company's high P/E ratio and potential overbought technical conditions. Palantir’s government work, including recent contracts with ICE and the U.S. Army, continues to attract both significant revenue and criticism from human rights advocates. Overall, Palantir maintains a strong market position as a key player at the intersection of AI and enterprise data analytics.