Palantir, a defense tech firm that specializes in big-data and artificial intelligence software, reported weaker-than-expected guidance that caused its shares to fall by up to 7% in Monday’s extended trading. The company’s earnings per share were 8 cents adjusted compared to the 8 cents that were expected, and their revenues of $634 million were slightly below the expected $625 million. Palantir also gave guidance for the second quarter and full year, anticipating revenues of $649 million to $653 million for the second quarter and $2.68 billion to $2.69 billion for the full year, both slightly below forecasts.
In a letter to shareholders, Palantir CEO Alex Karp highlighted the company’s expectation for significant growth in the near term, particularly driven by its U.S. commercial business. Karp emphasized the importance of software in modern warfare, stating that the platforms used by defense and intelligence partners pose a real threat to enemies. The company reported $105.5 million in net income for the quarter, marking their sixth consecutive profitable quarter on a GAAP basis. Revenue of $634 million was up 21% year-over-year from $525 million, indicating continued growth despite the guidance shortfall.
Despite reporting strong revenue growth and success in marketing its AI products to government and private sector clients, Palantir issued weaker-than-expected full-year guidance. The company recently signed a $178 million contract with the U.S. Army for the development of a next-generation sensor station, highlighting its ongoing engagement with defense and intelligence customers. Palantir focuses on delivering results quickly for its customers and conducted over 660 bootcamps in the first quarter to familiarize prospective clients with its technology.
While Palantir’s first-quarter financial results were positive, with record profits and increased revenue, the company’s full-year guidance fell short of expectations. CEO Alex Karp emphasized the transformative impact of software on modern warfare and the critical role that Palantir’s platforms play in national security. Despite facing challenges in meeting revenue forecasts, Palantir remains focused on delivering value to its customers in the government and commercial sectors by providing innovative AI solutions. The company’s commitment to driving growth through its commercial business and ongoing investments in technology development position it for continued success in the evolving defense tech market.
