Palantir Technologies (PLTR) stock is tumbling Tuesday after the software provider reported strong first-quarter results late Monday, but provided soft guidance for the full year. Still, one analyst says PLTR's growth story remains intact.
In the three months ended March 31, Palantir said its revenue was up 21% year-over-year to $634.3 million. Earnings per share (EPS) improved to 8 cents per share from 5 cents per share in the year-ago period.
The top-line results exceeded analysts' expectations while the bottom line matched forecasts. According to CNBC, Wall Street had expected revenue of $625 million and earnings of 8 cents per share.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Our business is now growing at a scale and pace that even our most ardent advocates would have been hard pressed to say was likely, or even possible," Palantir chief executive officer Alex Karp wrote in a May 6 letter to shareholders. "We anticipate that our U.S. commercial business, which accounted for 24% of our revenue last quarter, will remain one of the most significant drivers of our growth in the near term."
As a result of its strong performance in the first quarter, Palantir raised its full-year outlook. The company now expects revenue in the range of $2.677 billion to $2.689 billion, up from its previous outlook of $2.652 billion to $2.668 billion.
However, Wall Street wants more, which likely explains the post-earnings slump for the tech stock. According to CNBC, expectations are for full-year revenue of approximately $2.71 billion.
Where does Palantir stock stand with analysts?
Palantir stock has been a standout on the charts over the past 12 months, nearly tripling in value. Wedbush analyst Daniel Ives sees even more upside for PLTR, as evidenced by his Buy rating and $35 price target which represents implied upside of roughly 62% to current levels.
Ives says he sees "increased momentum" in the stock's growth story thanks to its Artificial Intelligence Platform. "AIP [is] leading the charge in generating significant demand across both commercial and government landscapes while [being] well-positioned to gain a larger share of this $1 trillion opportunity taking place with AI use cases exploding globally," the analyst said in a May 7 report.
Overall, most analysts are on the sidelines when it comes to the AI stock. According to S&P Global Market Intelligence, analysts' average target price for Palantir is $21.13, representing implied downside of about 2% to current levels. Additionally, the consensus recommendation is Hold.
Related Content
-
Qorvo Stock Pops After Starboard Takes a Stake in the Apple Supplier: What to KnowQorvo stock is soaring Friday after activist investor Starboard Value disclosed a new stake in the Apple supplier. Here's what investors need to know.
-
SLB Stock Jumps on Earnings, Dividend Hike and Buyback NewsSLB stock is soaring Friday after the energy firm reported strong fourth-quarter earnings and unveiled several shareholder-friendly initiatives.
-
SLB Stock Jumps on Earnings, Dividend Hike and Buyback News
SLB stock is soaring Friday after the energy firm reported strong fourth-quarter earnings and unveiled several shareholder-friendly initiatives.
-
Why J.B. Hunt Stock Is Sinking After EarningsJ.B. Hunt stock is notably lower Friday after the logistics company fell short of fourth-quarter earnings expectations. Here's what you need to know.
-
Converting Retirement Savings to a Roth IRA? Don't Do ThisYou might want to convert all of your savings to a Roth in one go, but you could end up paying hundreds of thousands more in taxes than you have to.
-
What Is Your 'Enough Is Enough' Number for Retirement?Chasing a 'magic number' for retirement can be anxiety-inducing. Instead, build your plans around a personal number that reflects your individual circumstances.
-
California Wildfires and Insurance: Looking for HelpLos Angeles-based insurance expert Karl Susman shares the view from his agency’s office as all hands are on deck to help their policyholders.
-
Stock Market Today: Stocks Pause After a Big RallyThe Nasdaq continues to lag the S&P 500 and the Dow so far in 2025.
-
Could ESG Funds be Removed from Your 401(k) Plan?A pilot successfully sued American Airlines for including ESG factors in its 401(k) plan.
-
UnitedHealth Is the Worst Dow Jones Stock Thursday. Here's WhyUnitedHealth is putting pressure on the 30-stock index Thursday after the insurance giant reported a rare revenue miss. This is what you need to know.
