When Palantir Technologies reports first-quarter earnings on Monday, the data analytics software maker's government and commercial businesses will again be in focus. But which one will move Palantir stock may depend on management commentary on the earnings call with Wall Street analysts.
On the stock market today, Palantir stock rose 0.7% to near 119. With Thursday's gain, Palantir stock has advanced for eight straight trading sessions.
While Palantir stock has surged in 2024 and this year largely on retail investor interest in artificial intelligence, the software maker's government and defense business has recently been in the spotlight.
In Q1, Wall Street analysts project adjusted earnings per share of 13 cents, up 65% from a year earlier, with revenue climbing 36% to $863 million.
Palantir's government revenue is projected to rise 37% to $460 million, with commercial revenue growing 35% to $403 million.
Palantir has provided data analytics tools to government customers for intelligence gathering, counterterrorism and military purposes. Now Palantir aims to use generative AI to spur growth in the U.S. commercial market, in such areas as health care, energy and financial services.
AI Monetization Key
The company continues to make progress with its "Artificial Intelligence Platform (AIP)," initially rolled out in early 2023. In March, Palantir hosted its sixth artificial intelligence conference for customers, with several new companies taking part.
RBC Capital analyst Rishi Jaluria, in a Q1 preview, said new generative-AI-related revenue has yet to kick in.
"Our checks with industry experts and technologists suggest that AIP monetization remains in early stages and will not be meaningful to near-term results," he said.
"All in, we remain cautious on the sustainability of commercial growth given high levels of competition and product-market fit outside of large, complex enterprises."
Ahead of the Q1 Palantir earnings report, a basic options trading strategy around earnings — using call options — allows investors to buy a stock at a predetermined price without taking a lot of risk.
Amid stock market volatility from President Donald Trump's tariff-based trade policy, Palantir stock has gained 56% in 2025.
Further, Palantir gets about 55% of its revenue from government agencies.
One concern for Palantir stock has been possible Department of Defense budget cuts and exposure to U.S. Army contracts. Recent news for Palantir has been mixed, with one analysts expecting upside from a new U.S. defense contract. Also, Palantir won a new contract with NATO.
Palantir Stock Technical Ratings
Further, Palantir has won a new $30 million contract from the U.S. Immigration and Customs Enforcement (ICE) agency as well as a deal at the Internal Revenue Service, recent reports said.
PLTR stock holds an Accumulation/Distribution Rating of B+. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
Also, Palantir stock holds a perfect Composite Rating of 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Palantir stock has formed a new cup base with an entry point of 125.41, according to MarketSurge.
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Further, Palantir is among the top artificial intelligence stocks to watch.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
