May 6, 2025 – [cm – msch] Palantir Technologies just dropped its Q1 2025 numbers—and they’re nothing short of explosive. The company continues its double-digit growth streak, raises its full-year outlook, and reports a sharp rise in large-scale customer wins. Still, the market had other ideas: shares fell 8.7% after hours, proving once again that in tech, good news isn’t always good enough.

The U.S. big data and AI powerhouse posted $628 million in U.S. revenue, up 55% year-over-year and 13% quarter-over-quarter, with its commercial U.S. segment jumping 71% YoY—surpassing a $1 billion annual run rate. The company is clearly winning the enterprise AI race on home turf.

“We are in the middle of a tectonic shift in the adoption of our software,” said Palantir CEO Alexander Karp. “We’re delivering the operating system for the modern enterprise in the era of AI.” Karp also touted a Rule of 40 score of 83%, a favorite metric among SaaS investors, which Palantir has now “broken” yet again.

In terms of deal flow, Palantir is on fire:

• 139 deals worth at least $1 million

• 51 deals over $5 million

• 31 deals topping $10 million

The company also recorded its highest-ever U.S. commercial total contract value (TCV) at $810 million, a jaw-dropping 183% increase YoY. Add in $310 million in cash from operations (a 35% margin), and you’ve got a serious efficiency engine humming beneath the surface.

Still, Wall Street reacted with a sell-off, possibly due to high expectations baked into the stock or cautious guidance interpretation.

Palantir is now guiding full-year revenue between $934 million and $938 million, with adjusted operating income expected between $401 million and $405 million.

Meanwhile, Palantir continues to build strategic bridges:
In March, it inked a three-year deal with EYSA, aimed at supercharging the development of mobility applications using Palantir’s software stack. The collaboration marks another step toward embedding Palantir’s tech into real-world, high-demand sectors beyond defense and intelligence.

 

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