Palantir Technologies is an American company that helps organizations make sense of big data. Founded in 2003 by Peter Thiel, Stephen Cohen, Joe Lonsdale, and Alex Karp, it’s based in Denver, Colorado. Palantir creates software platforms like Palantir Gotham for intelligence and defense, Palantir Foundry for data analysis, Palantir Apollo for continuous delivery, and Palantir AIP for AI solutions.
Originally focused on U.S. federal agencies, Palantir has expanded to work with international governments, local governments, and private companies. Their software helps these organizations integrate and analyze large amounts of data to make decisions quickly.
Palantir plays a crucial role in the AI industry, with its technology being used in various fields like defense, healthcare, and manufacturing. The company has seen strong financial growth and has a positive outlook for the future.
Palantir Fiscal Q1 2025
Palantir Technologies (PLTR) has released its financial results for the first quarter of 2025, reporting a 39% year-over-year revenue increase.
Also, U.S. revenue saw substantial growth, rising 55% year-over-year. The company has also raised its full-year 2025 revenue forecast to 36% year-over-year growth, while U.S. commercial revenue projections have been adjusted to reflect an expected 68% increase, significantly surpassing consensus expectations. Additionally, earnings per share were in line with estimates.
Highlights
- Total revenue: $884 million, up 39% year-over-year
- U.S. revenue growth: 55% year-over-year
- U.S. commercial revenue: $255 million, up 71% year-over-year
- U.S. government revenue: $373 million, up 45% year-over-year
- Record U.S. commercial total contract value (TCV): $810 million, up 183% year-over-year
- U.S. commercial remaining deal value (RDV): $2.32 billion, up 127% year-over-year
- Customer base growth: 39% year-over-year
- Earnings per share: Stood at $0.08 on a GAAP basis and $0.13 on an adjusted basis.
- Cash holdings: $5.4 billion, reinforcing its strong financial position.
Guidance
Palantir expects strong growth in Q2 2025, with revenue projected between $934–$938 million and adjusted income from operations between $401–$405 million.
For the full year, the company has raised its revenue guidance to $3.89–$3.902 billion and U.S. commercial revenue forecast to over $1.178 billion, reflecting at least 68% growth.
The company remains confident in achieving GAAP operating income and net income in every quarter of the year.
Boards Statements
Alexander C. Karp, Co-Founder and Chief Executive Officer of Palantir Technologies, highlighted the company’s strong performance, noting a significant increase in its Rule of 40 score to 83% in the last quarter, once again exceeding expectations. Palantir is undergoing a transformative shift in software adoption, particularly in the U.S., where revenue surged by 55% year-over-year. Additionally, U.S. commercial revenue grew by 71% year-over-year in the first quarter, surpassing the one-billion-dollar annual run rate.
Karp emphasized that Palantir is delivering the operating system for modern enterprises in the AI era. Reflecting confidence in its trajectory, the company has raised its full-year guidance, projecting total revenue growth of 36% and U.S. commercial revenue growth of 68%.
Impact on the Stock Market
Palantir’s Q1 2025 earnings report showed strong revenue growth and raised full-year guidance, driven by increasing adoption of its AI software. Despite beating revenue expectations, the stock fell about 9% after the earnings release.
The main reason is that while revenue exceeded expectations, earnings per share (EPS) only matched estimates instead of beating them. Investors were expecting a bigger surprise.
Additionally, the stock had already surged over 60% this year, meaning some of the optimism was already priced in. With no major EPS beat, investors took profits, leading to the drop. Some analysts also noted the stock hit technical resistance, causing a pullback.
