Palantir plunges 14% on mixed Q1, weak Q2 guidance

Palantir Technologies (NYSE:PLTR) shares plunged on Monday, as the data analytics software company posted mixed first-quarter results and said revenue for the second quarter would come in well below estimates, prompting investors to worry about a slowdown in growth.

For the second quarter, Palantir (PLTR) said it expects $470 million in sales, compared to estimates of $483.76 million. The company caveated that figure, noting that "there is a wide range of potential upside to our guidance, including those driven by our role in responding to developing geopolitical events."

Palantir (PLTR) shares fell more than 15% in premarket trading to $8.02. Year-to-date, Palantir (PLTR) has fallen more than 48%.

For the first quarter ending March 31, Palantir (PLTR) earned an adjusted $0.02 per share on $446 million in revenue, up 30.8% year-over-year. Analysts were expecting the company to earn an adjusted $0.04 per share on $443.51 million in revenue.

During the period, Palantir (PLTR) said it grew commercial revenue 54% year-over-year, including 136% growth in the U.S.

Palantir (PLTR), which has primarily worked with the U.S. government, said it grew its customer count 86% year-over-year as it expands its business.

Earlier this month, Palantir (PLTR) was chosen for a 5-year contract with the Department of Health and Human Services, worth some $90 million.

For the full-year, Palantir (PLTR) said it expects adjusted operating margins to be around 27%.

Last month, investment firm Piper Sandler raised its price target on Palantir (PLTR), noting it should see "rapid growth" in its U.S. government business.