Palantir Reports Inline Profit But Lifts Guidance On A.I. Demand

Data analytics firm Palantir (PLTR) has reported first-quarter financial results that largely met Wall Street’s expectations but raised its forward guidance due to strong artificial intelligence (A.I.) demand.Denver, Colorado-based Palantir announced earnings per share (EPS) of $0.13 U.S., which matched the consensus forecast among analysts. Revenue in the quarter totaled $884 million U.S., which was ahead of the $863 million U.S. expected on Wall Street. Sales were up 39% from a year ago. Despite the tepid print, Palantir lifted its guidance, saying that it is seeing a “tectonic shift” in the adoption of its software, particularly as it relates to A.I. applications. The company, which provides A.I. software and technology solutions for governments and corporations, said it now expects full-year revenue of $3.89 billion U.S. to $3.90 billion U.S. Palantir previously projected full-year revenues of $3.74 billion U.S. to $3.76 billion U.S. Management also raised their outlook for free cash flow to between $1.60 billion U.S. and $1.80 billion U.S. from $1.71 billion U.S. to $1.72 billion U.S. previously.Palantir said it closed 139 deals totaling at least $1 million U.S. in the January through March period, 51 of which topped $5 million U.S. The company said that its commercial revenue grew 71% from a year ago to $255 million U.S., while its government sales increased 45% to $373 million U.S. during Q1 of this year. The company is forecasting that its U.S. commercial revenue will top $1.178 billion U.S. in 2025. Palantir’s stock is up 64% this year and is the top performer in the benchmark S&P 500 index.However, the company’s share price is down 7% following its latest financial results and is now trading at $115.06 U.S.