Palantir Technologies (PLTR), known for its data analytics and AI-driven platforms, Gotham and Foundry, reported strong financial results for Q1 of 2025. The company raised its full-year revenue guidance and posted nearly 40% year-over-year revenue growth. However, the market reaction was dull, with the stock declining, highlighting investor sensitivity to valuation levels and the business’ broader market positioning.
Key Financial Metrics
● Total Revenue: $884 million, up 39% year-over-year.
● EPS: $0.13, in line with forecasts.
● Net Income: $214 million, up from $105.5 million a year ago, a 103% increase.
● Commercial Revenue: $255 million, a 71% year-over-year increase.
● Government Revenue: $373 million, up 45% year-over-year.
● US Revenue: Increased by 55% to $628 million.
● Deals Signed: 139 contracts worth at least $1 million, including 31 deals over $10 million.
Palantir’s first-quarter results highlighted continued operational strength, driven by strong demand across government and commercial segments. However, while the company reported strong revenue growth and continued a bullish stance with a long-term outlook, the stock fell over 13% after the earnings report, largely due to valuation concerns after a 750% rally over the past two years. Technically, Palantir is trading between $65 and $125, with any breakout likely to dictate its next trend. Analyst sentiment is mixed: Citigroup raised its price target to $115, HSBC cut it to $92, and the FactSet consensus reflects a “Hold” rating with an average target of $98.89, signalling cautious optimism tempered by valuation challenges.
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** This article was prepared by BROKSTOCK analyst Maboko Seabi
