Palantir Technologies Inc (NYSE:PLTR) shares were nearly 13% lower on Tuesday morning as investors reacted to strong but not spectacular first-quarter results that failed to sustain one of the tech sector's top-performing stocks this year.
Revenue rose 39% to $884 million, beating forecasts, and the company raised its 2025 guidance to $3.9 billion.
Still, some analysts were left unconvinced, citing a lack of fresh growth drivers and lukewarm international performance.
Commercial sales in the US jumped 71%, while government contracts rose 45%.
Despite recent AI-driven momentum, concerns over Palantir’s stretched valuation (more than 200 times estimated earnings) prompted the pullback.
CEO Alex Karp called the growth “unparalleled,” but with the stock up 64% this year, expectations may have outpaced delivery.
The stock, up 65% year-to-date, was expected to open down $9.10 at $114.67.