Palantir Technologies (PLTR) on Monday reported first-quarter earnings that met views while revenue topped Wall Street targets even though U.S. commercial sales growth slowed. The data analytics software maker’s revenue guidance for Palantir stock came in slightly above expectations.
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For the quarter ended March 31, Palantir earnings using generally accepted accounting principles, or GAAP, were 8 cents a share, up 60% from a year earlier. Revenue rose 21% to $634 million, the software maker said.
Analysts had predicted earnings of 8 cents a share on revenue of $615 million.
Denver-based Palantir said government revenue rose 16% to $335 million, vs. estimates of $322 million in sales. In addition, commercial revenue rose 27% to $299 million, topping estimates of $292 million.
In Q1, U.S. commercial revenue rose 40% compared with 70% in the fourth quarter of 2023. Palantir said it now expects “revenue in our U.S. commercial business to grow 45% or more in 2024 compared with 2023.”
Palantir Stock: AI Platform
At William Blair, analyst Louie DiPalma said in a report: “In our view, the stock is likely down because U.S. commercial revenue growth sharply decelerated to 40% from 70% last quarter. This is a focus for investors because of the AI (artificial intelligence) push.”
For the current quarter ending in June, Palantir said it expects revenue of $651 million at the midpoint of guidance. Analysts had predicted sales of $643 million.
On the stock market today, PLTR stock fell 2.2% to 24.68 in extended trading. In Monday’s regular session, shares had popped 8%.
Heading into the Palantir earnings report, shares are up 44% in 2024. Palantir stock has jumped 233% over the past year amid buzz over generative artificial intelligence technology.
Also, Palantir rolled out its “Artificial Intelligence Platform” in early 2023. Further, Palantir is among AI stocks to watch.
Palantir has already mined the AI opportunity with government customers for intelligence gathering, counterterrorism and military purposes. Now Palantir aims to use generative AI to spur growth in the commercial market. The software maker has expanded into health care, energy and manufacturing.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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