Palantir (PLTR) shares dropped 7% on Tuesday, as the company’s first-quarter earnings failed to satisfy investors amid broader anxieties regarding how artificial intelligence might disrupt the software industry.
The company reported an 85% surge in revenue for the first three months of the year, reaching $1.63 billion and surpassing the consensus estimate of $1.53 billion. The U.S. market accounted for the bulk of this performance, contributing $1.28 billion.
Palantir noted that its domestic business <a Valuation is part of it," Adam Coons, chief <a that competitive landscape and kind of how that eats away at the future value."
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Palantir is widely viewed as a beneficiary of U.S. government contracts across various agencies, including the Pentagon, the Department of Homeland Security, and the U.S. Department of Agriculture.
CEO Alex Karp challenged those betting against Palantir’s success and questioning the impact of AI on the company’s operations.
“When the whole world said software had to be worthless, we built platforms that work,” Karp said during the company’s earnings call.
“How can a company grow 100% in the US with functionally a non-existent salesforce,” he added.
Adjusted earnings per share climbed more than 150% to $0.33, exceeding the projected $0.28.
The company increased its full-year revenue guidance to a range of $7.65 billion to $7.66 billion, up from its previous forecast of $7.182 billion to $7.198 billion.
Furthermore, it raised its U.S. commercial revenue outlook for the year to $3.22 billion, representing a 120% increase over the prior growth projection of 115%.
The firm has experienced accelerating sales growth, securing business with major corporations such as Nvidia (NVDA), Airbus (AIR.PA), and Stellantis (STLA).
During the last quarter, Palantir reported closing 206 deals worth at least $1 million, 72 deals worth at least $5 million, and 47 deals worth at least $10 million.
Palantir shares have been attempting to recover from a previous sell-off, which occurred as the software sector faced pressure over concerns that AI could disrupt established business models.
