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Palantir Posts Profitable 85% Revenue Surge While Shares Retreat

The company says AI-driven demand and higher guidance show durable commercial momentum that investors must reconcile with a very rich valuation.

Overview

  • Palantir reported Q1 revenue of $1.63 billion, up 85% year over year, and GAAP net income of $871 million, and management raised full‑year revenue guidance to about $7.65 billion.
  • Executives credited growth to its AIP/ontology approach and sales programs that helped close $2.41 billion of total contract value and lift U.S. commercial revenue more than 130%.
  • Customer economics look strong with 150% net dollar retention, $11.8 billion of remaining deal value, and roughly $8 billion in cash and short‑term Treasuries that support expansion.
  • CEO Alex Karp said demand in the U.S. exceeds the company’s capacity, a comment investors view as proof of traction but also as a potential execution constraint.
  • Despite the results, the stock has pulled back from recent highs and trades at very high multiples, and a company director disclosed roughly $2.1 million in stock sales this month, increasing investor scrutiny.