Palantir Technologies stock fell on Tuesday morning after investors were unimpressed with the company’s annual revenue outlook. The defense technology company’s stock fell more than 13% in morning trading, trading at $22.
among them The latest earnings report was released on Mondaythe company beat analysts’ earnings The expectations are based on demand for boot camps and technology products from American companies. The company reported revenue of $634 million, compared to expectations of $615 million, according to FactSet. Palantir’s revenue increased 21% year-over-year and 4% sequentially. Earnings per share were in line with expectations of 8 cents.
However, the company said it expects revenue to decline this quarter, with an estimate of between $649 million and $653 million. This was lower than analysts’ expectations of $653 million. Additionally, the company expected full-year sales of $2.68 billion to $2.69 billion. This is lower than Wall Street analysts’ estimates of his $2.71 billion.
The company closed 87 deals worth at least $1 million in the first quarter, with 27 worth at least $5 million and 15 worth at least $10 million, according to its earnings report. However, Palantir’s U.S. commercial revenue growth slowed significantly, falling to 40% from 70% in the previous quarter.
William Blair analyst Louis DiPalma reiterated his underperform rating on the stock, writing, “We do not believe the company’s commercial momentum in the U.S. is sustainable.”
Palantir develops AI tools for military and intelligence agencies. The company is one of the leading stocks in the technology industry’s current AI craze, with AI momentum increasing over 200% in the past 12 months thanks to new products. In the first quarter of 2024, Palantir won $178 million from the US Army for the development of deep sensing capabilities for its AI-powered vehicles.
—Britney Nguyen contributed to this article.
