Palantir Technologies reported first-quarter 2025 revenue of $884 million, a 39% increase year-over-year, exceeding analyst expectations of $863 million. Adjusted earnings per share were $0.13, in line with estimates. Net income rose to $214 million, up 103% from a year earlier. The company reported an operating margin of 20%, adjusted EBITDA of $397 million, and an adjusted EBITDA margin of 45%. Free cash flow reached $304 million. U.S. commercial revenue surged 71% year-over-year to $255 million, and U.S. government revenue rose 45% to $373 million. Total U.S. revenue accounted for about 71% of overall sales. Palantir's customer count increased 39% year-over-year to 769, with net dollar retention at 124%. The company raised its full-year 2025 revenue guidance to between $3.89 billion and $3.90 billion, and expects U.S. commercial revenue to reach $1.18 billion, representing 68% annual growth. The Q2 revenue outlook is $934 million to $938 million, and full-year EBIT guidance is $1.72 billion. Despite the strong results and raised guidance, Palantir's stock closed at $108.86 on May 6, 2025, falling over 13% during the session. The decline was attributed to concerns over the company's high valuation—trading at more than 200 times estimated earnings—and a 10% year-over-year decline in international commercial revenue, which totaled $142 million. Analysts also cited a modest sequential margin decline and questioned whether future growth could justify the current valuation. Palantir's stock had gained 63% year-to-date prior to the earnings release and more than 331% over the past year. Some analysts have raised their price targets, but others remain cautious due to the company's elevated valuation and slowing international momentum.