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(Sharecast News) - Palantir Technologies boosted full-year guidance on Tuesday, after booming demand in the US saw first-quarter revenues soar, smashing forecasts.
The American firm, a specialist in using artificial intelligence to analyse big data, saw revenues rocket 85% to $1.63bn, after US sales increased by 104% year-on-year to $1.28bn. Of the near 400 deals closed during the quarter, 206 were of at least $1m, Palantir noted. Wall Street had been expecting revenues closer to $1.54bn.
Net income soared to $876.4m from $217.7m, well ahead of forecasts for $627.7m.
In a letter to shareholders, chief executive Alex Karp - who co-founded the business with chair Peter Thiel - called the US "the center, the constant core, of our business. And that business is erupting".
He continued: "We believe it is not hyperbolic to say that nearly all AI workflows that actually create value, especially on the battlefield, are built on Palantir. We are an N of 1.
"Our financial results now demonstrate a level of strength that dwarfs the performance of essentially every software company in history at this scale.
"We stand on the walls, sentinels of the inner sanctum, against the assault of AI slop."
Looking to the full year, Palantir raised its revenue guidance to between $7.65bn and $7.66bn - up from the $7.18bn to $7.20bn range previously forecast - with the outlook for US commercial revenues increased to in excess of $3.22bn.
Adjusted income from operations was slated to come in between $4.44bn and $4.45bn.
However, the stock came under pressure in pre-market trading. As at 1015 BST, the Nasdaq-listed shares were trading 3% lower.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said demand for Palantir's AI platform was accelerating across both commercial and government customers. "The key point is that this growth is not just about companies testing AI in small pockets - AI is increasingly being used in real-world operations, where the stakes are high, and customers need AI to deliver clear, measurable results."
However, he acknowledged: "The valuation, while looking more reasonable than at points last year, still leaves little room for anything except perfection. Palantir looks to be one of the best pure plays on applied AI, but investors need to recognise that expectations are already very high."