PLTR 1Q25:Strong Quarterly Performance with a Few Blemishes Prompting Share Pullback

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In our prior analysis, we highlighted that while there was a chance for Palantir to reach the ~40% YoY growth "bogey" this quarter, several uncertainties remained. These included limited incremental budget expansion from existing U.S. Commercial customers and weaker-than-expected performance in International Commercial. The earnings results confirmed that these areas indeed posed risks.

Given the recent sharp run-up in the stock and elevated retail ownership, even minor blemishes in the print were closely scrutinized and amplified, triggering profit-taking and a short-term pullback.

That said, from a business fundamentals standpoint, we don’t see any major cracks. The core remains solid, and this does not appear to mark an inflection toward deterioration. The quarter reflects some growing pains, not a break in the structural trajectory.

Total Revenue and Guidance

• 1Q FY25: $884M — beat by 2.4%, up 39.3% YoY, though slightly below buyside bogey (~40%)

• 2Q Guide: $936M — beat by 2.7%, implying 38.1% YoY growth

• FY25 Guide: Raised to $3.9B — up 3.9% from prior, representing 35.9% YoY growth → A string of consecutive beat-and-raise quarters has pushed buyside expectations above 40% growth for this print, setting up for mild disappointment despite solid headline numbers.