Palantir Technologies (PLTR) on Monday reported first-quarter earnings and revenue that topped Wall Street targets. PLTR stock emerged as the company’s CEO outlined plans to capitalize on growing business interest in artificial intelligence.
For the period ended March 31, Palantir earnings on an adjusted basis were 5 cents. Revenue, too, rose 18% to $525 million, the maker of data analytics software said. The data analytics software maker reported results after the market closed.
Analysts had forecast earnings of 4 cents a share on revenue of $506 million. Furthermore, Denver-based Palantir said state revenue rose 20% to $289 million, in line with estimates. Meanwhile, commercial revenue rose 15% to $236 million, topping the $217 million showing.
PLTR shares fell 12.5% to 8.71 in afternoon trading on the stock market today.
Palantir CEO: Demand is ‘unprecedented’
In a letter to shareholders, CEO Alex Karp said the software maker is well positioned amid growing interest in artificial intelligence tools.
“The depth of engagement with and demand for our new Artificial Intelligence Platform (AIP) is unprecedented,” he said. “We are currently mobilizing our company and sales team to convert this organic and in-depth interest into an expansion of our reach in the market.”
He added: “AIP enables companies across the commercial and public sectors to harness the power of large language models on their own private datasets. The first iteration of the platform will be made available to select customers this month.”
Palantir Stock: Sales Guidance Candles
Using generally accepted accounting principles, or GAAP, Palantir said it had net income of $17 million in the March quarter.
For the current quarter ending in June, Palantir forecast revenue of $530 million versus estimates of $537 million.
PLTR stock had risen 15% in 2023 heading into Palantir’s earnings report.
Palantir stock has a weak relative strength rating of 26 out of a possible 99, according to IBD Stock Checkup.
Also, Palantir gets almost 60% of its revenue from government agencies. They use Palantir software for intelligence gathering, counterterrorism and military purposes. In addition, the software maker has expanded into the health, energy and manufacturing sectors.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cyber security and cloud computing.
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