Palantir 2025 Q1 Earnings Beats Expectations as Net Income Surges 105%

Palantir reported its fiscal 2025 Q1 earnings on May 05th, 2025. The company's revenue of $884 million surpassed analyst expectations of $864.11 million, showcasing strong performance. Palantir's guidance was raised, with full-year revenue now projected between $3.89 billion and $3.902 billion, indicating confidence in continued growth. The company's adjusted income from operations and free cash flow guidance were also increased, reflecting robust financial health.

Revenue

Palantir's total revenue for Q1 2025 increased by 39.3% to $883.86 million, up from $634.34 million in Q1 2024. The company reported a significant rise in U.S. commercial revenue, which grew by 71% year-over-year to $255 million, contributing to a billion-dollar annual run rate. U.S. government business also saw impressive growth, with revenue increasing 45% year-over-year to $373 million.

Earnings/Net Income

Palantir's EPS rose to $0.09 in Q1 2025 from $0.05 in Q1 2024, marking a 80.0% increase year-over-year. The net income also grew substantially to $217.72 million in Q1 2025, compared to $106.07 million in Q1 2024, representing a 105.3% growth. This marks the highest fiscal Q1 net income in six years. The EPS reflects positive growth and investor confidence.

Price Action

The stock price of Palantir edged up 0.06% during the latest trading day, climbed 7.95% during the most recent full trading week, and surged 41.53% month-to-date.

Post Earnings Price Action Review

Palantir's earnings report had a notable impact on its stock price. Revenue exceeded analyst estimates, contributing to positive market sentiment and investor optimism. The company's net income demonstrated profitability, although its direct impact on stock price was not as immediate as revenue. The reported EPS matched analyst expectations, showcasing substantial year-over-year growth and attracting investor interest. Overall, these metrics positively influenced Palantir's stock price by bolstering investor confidence. However, external factors such as market conditions, industry trends, and macroeconomic indicators also play a role in stock price movements.

CEO Commentary

Alex Karp, Chief Executive Officer, emphasized Palantir's performance stemmed from 20 years of investment and a cultural shift in the U.S., resulting in notable growth in both commercial and government sectors. He highlighted the recognition of large language models as commodities and expressed confidence in Palantir's unique position to drive software adoption and efficiency, focusing on leveraging the best talent within the company.

Guidance

Palantir raised its full-year 2025 revenue guidance to between $3.89 billion and $3.902 billion, expecting U.S. commercial revenue to exceed $1.178 billion, representing at least 68% growth. For Q2 2025, the company anticipates revenue between $934 million and $938 million. Adjusted income from operations guidance is raised to between $1.711 billion and $1.723 billion, with adjusted free cash flow projected between $1.6 billion and $1.8 billion.

Additional News

In recent weeks, Palantir has been highlighted for its strategic international expansions and collaborations. The company renewed and expanded its contract with the U.K. National Health Service, leveraging its Foundry platform to manage data across post-pandemic workflows. Additionally, Palantir is increasing its presence in European defense alliances and infrastructure partnerships. The company's Artificial Intelligence Platform is gaining traction globally, with pilot programs initiated with major industrial and automotive manufacturers in France and South Korea. These initiatives reflect Palantir's growing international footprint and strategic focus on expanding its AI solutions beyond traditional analytics tools.