Palantir Technologies Raises Revenue Outlook Amid Strong AI Demand
Palantir Technologies (PLTR) has revised its revenue projections for the current fiscal year, reflecting robust demand for its artificial intelligence (AI) software solutions. However, the company’s latest earnings report fell short of investor expectations, leading to a decline in its stock price during after-hours trading.
Updated Revenue Projections
For the second quarter, Palantir anticipates sales between $934 million and $938 million. Its revised full-year revenue forecast is now set at $3.89 billion to $3.9 billion, an increase from a previous estimate of $3.74 billion to $3.76 billion. These projections exceed Wall Street analysts’ estimates compiled by Visible Alpha.
Leadership Insights
In correspondence with shareholders, CEO Alex Karp highlighted the surge in large language model adoption, stating, “The rush towards large language models, as well as the foundational software architecture that is capable of making them valuable to large organizations, has turned into a stampede.” He further expressed optimism, asserting that the recent results signify a transformative moment within both Palantir and the broader industry.
Quarterly Performance Details
During the first quarter, Palantir reported a revenue of $884 million, marking a 39% increase compared to the same period last year. The adjusted earnings per share rose from 8 cents to 13 cents, aligning with analyst expectations. Despite these positive metrics, investor enthusiasm appeared dampened, particularly after previous standout performances in February and November.
Market Response
Following the earnings announcement, Palantir’s shares fell nearly 9% in after-hours trading. Nevertheless, the stock has still performed exceptionally well over the past year, boasting a 400% increase as of the latest close, along with a 63% gain in 2025.
Conclusion
This article has been updated to reflect the most recent market information. While Palantir’s financial outlook indicates continued growth driven by AI innovations, investor reactions suggest a cautious approach in light of quarterly earnings.