PLTR Stock Forecast: 85% Revenue Growth, Why Is Stock Falling?
Palantir reported first-quarter revenue of $1.63 billion, beating expectations of $1.54 billion. Earnings also exceeded forecasts, with adjusted earnings per share reaching 0.33 versus the expected 0.28. The headline number stands out. Revenue surged 85% year over year, marking the companys fastest growth since its 2020 market debut. Net income rose sharply to $870.5 million, up from $214 million a year earlier. This level of expansion places Palantir among the fastest-growing large-scale software companies. CEO Alex Karp emphasized that the company now operates at a level that sets it apart across the industry. AI Demand Drives Commercial Momentum Growth did not come from a single segment. Instead, both government and commercial businesses expanded rapidly, driven by rising demand for artificial intelligence solutions. US commercial revenue climbed 133% to $595 million. Although this figure came slightly below expectations, it still reflects strong adoption of Palantirs AI platform. The company also expanded its customer base, reaching over 1,000 commercial clients over the past year. New deals with major global firms, including Airbus and Stellantis, reinforced that momentum. These partnerships highlight how enterprises continue to integrate AI into operations at scale. Government Contracts Strengthen Core Business Government demand remained a key pillar of growth. Revenue from US government clients increased 84%