Palantir misses profit estimates, forecasts dull Q2

Palantir Technologies Inc has forecast second-quarter revenue below Wall Street estimates.

Palantir also missed first-quarter profit estimates. It shares tumbled 15% in premarket trading as a result.

The company is known for its work with the U.S. Army and the Central Intelligence Agency.

The government software maker still sees a “wide range” of potential upside to its forecast from “developing geopolitical events”.

Palantir forecast adjusted operating margin of 20% for the current quarter, compared with 31% a year earlier, a possible result of its expenditure on its salesforce to close more deals.

The company expects second-quarter revenue to be $470 million, implying a growth of just 25% year-over-year, compared with 49% growth a year earlier. Analysts on average expected a revenue of $483.9 million.

Palantir reported first-quarter revenue of $446.4 million, above Refinitiv estimates of $443.4 million, driven by strength in its U.S. commercial business.