Shares of Palantir Technologies slumped more than 13% on Tuesday, after quarterly results and a raised forecast failed to meet the high expectations of Wall Street investors, who had driven the stock price up significantly ahead of earnings.
The data analytics company’s stock had gained 63% ahead of earnings this year, following a more than fourfold increase last year, fueled by AI-powered growth and government contracts.
“We believe we have reached a point where respectable earnings beats and raised guidance aren’t enough to materially move the stock to the upside,” Morningstar analyst Mark Giarelli said.
Palantir is set to lose more than $40 billion from its market valuation of $292.06 billion if losses hold.
The Denver, Colorado-based company is a significant beneficiary of increased AI-driven demand and strong government contracts, with its AI software solutions being widely used across U.S. commercial sectors such as healthcare, energy, and automotive.
Palantir’s total revenue grew 39% in the first quarter to $883.9 million, with U.S government revenue up 45% from a year earlier. Analysts had expected quarterly revenue of $862.8 million, according to data compiled by LSEG.
Despite the seasonally light quarter, analysts noted strong demand for Palantir’s solutions, with its U.S. business driving results and securing the “lion’s share” of new customers in the quarter.
“Despite recent uncertainty introduced from tariff announcements, Palantir continues to see underlying momentum in the business, landing a record number of $1M deals,” analysts at D.A. Davidson said.
The company now expects full-year revenue to be between $3.89 billion and $3.90 billion, up from its earlier forecast of sales between $3.74 billion and $3.76 billion.
At least 9 brokerages raised their price target for Palantir after earnings, bringing the PT median to $96.46.
Palantir’s 12-month forward price-to-earnings ratio is 202.07, compared with Snowflake’s 131, Salesforce’s 23.48 and Datadog’s 54.81.
—Harshita Mary Varghese, Reuters
Login to add comment
Other posts in this group
A “feel good” herbal supplement is facing backlash online after a number of social media users shared their stories of addiction and terrifying health effects.
Feel Free is sold at
Authorities overseeing the development of artificial intelligence in Ind
There’s a war brewing in the world of AI agents. After
Forget Cowboy Carter or the Eras tour, the hottest ticket this year is for your favorite podcast.
Content creator tours sold nearly 500% more tickets this year compared to 20
In late July, the Trump administration released its long-awaited AI Action Pla
Matthew Williams has slept very little since he learned about Sacha Stone’s plan to build a “sovereign” micronation on 60 acres of land near his home in rural Tennessee. What began as a quic
Let’s be honest: Your phone is a jerk. A loud, demanding, little pocket-size jerk that never stops buzzing, dinging, and begging for your attention. It’s the first thing you see in the
