Palantir Stock Plummets 12% Despite Strong Earnings as International Growth Concerns Mount

Palantir Technologies Inc. shares tumbled 12% Tuesday in a market-defying drop that caught investors off guard. The AI software firm reported robust Q1 earnings with 39% revenue growth to $884 million, yet saw its stock crater on international weakness and valuation concerns.

U.S. operations showed remarkable strength with 55% revenue growth and a 71% surge in commercial segment sales. But a 10% year-over-year decline in global sales cast doubt on the company’s ability to maintain its growth trajectory. "We’re seeing bifurcated performance across regions," CEO Alex Karp noted during the earnings call, acknowledging the international headwinds.

Goldman Sachs analysts suggest the selloff reflects market recalibration of growth expectations rather than fundamental deterioration. The divergence between domestic success and overseas struggles presents both challenge and opportunity for the data analytics firm as it navigates evolving market conditions.