Palantir increases annual income forecasts over AI demand but non -impressed investors

For Arsheya Bajwa

(Reuters) -Palantir Technologies on Monday raised its annual sales forecast, although their online profit and modest income exceeded the disappointing investors waiting more than the AI ​​-centered data and analytical firm, reducing their actions by 8% in extensive negotiation.

The action has been one of the biggest winners of a manifestation in AI actions, increasing more than 60% this year, as investors opted for their ability to benefit from AI deployment on a large scale and increase government expenditure on defense technology.

“The only one that is higher than the results reported was expectations and that is why the stock market is down,” said DA Davidson’s analyst Gil Luria. “Investors expected even more.”

Palantir reported a tight benefit of 13 cents per action during the first quarter, which was in line with the average estimate of analysts, according to LSEG data.

The company recorded income of $ 883.9 million during the period, almost 2.4% above the estimates of $ 862.8 million.

“Investors were waiting for fireworks, not only the results. Maybe a … 10 times the income,” said Michael Ashley Schulman, Running Point Capital Running Investment Director.

For the 2025 financial year, the Denver company, based in Colorado, hopes that revenue between $ 3.89 billion and $ 3.90 million, until the previous sales forecast between $ 3.74 billion and $ 3.76 million. Analysts expect, on average, $ 3.75 million in sales annually. It also provides for second quarter revenue over estimates.

Co-founded by the billionaire Tech Peter Thiel, a significant part of the company’s income comes from its services for governments, such as the supply of software that visualizes the position of troops in a battle.

The United States government accounted for more than 42% of the revenue in the three months that ended on March 31.

The great government contractors of the United States, such as Accenture and IBM, have marked a success of the cost reduction efforts of the Administration of President Donald Trump mainly through the Government Efficiency Department.

During an interview with Reuters, Palantir’s executives did not directly address the questions about whether the Dooge expenses cuts, led by the billionaire Elon Musk, would affect the company’s contracts.

“The focus on efficiency is excellent to palanting. The United States government is very supportive of the United States government to promote efficiency throughout the government,” said Finance Chief David Glazer in Reuters.

(Arsheya Bajwa’s report to Bengaluru; Esilva Anil Edition)