Palantir’s Earnings Beat Estimates, But Stock Falls as Outlook Fails to Impress [Video]

Palantir Technologies (PLTR) reported better-than-expected earnings and revenue for the first quarter on strength in its commercial segment. However, shares fell over 6% in extended trading Monday as the artificial intelligence (AI) software maker’s guidance failed to impress amid reports that investors may have been looking for more.

The company’s revenue for the first quarter of 2024 was $634.34 million, a 21% increase from the year-ago period and above analysts’ expectations. Net income of $105.53 million increased 17% from the year-ago quarter, while diluted earnings per share (EPS) came in at 4 cents, up from 1 cent a year earlier. Both earnings metrics topped analysts’ projections, according to estimates compiled by Visible Alpha.

Palantir reported its commercial revenue grew 27% year-over-year to $299 million, above analysts’ estimates of $290.4 million. Government revenue, which makes up the majority of the software company’s sales, was $335 million, a 16% jump from the year-ago period, with the U.S. …