Palantir Technologies Inc. (NASDAQ:PLTR) shares moved lower in Tuesday’s premarket session despite a strong quarterly performance and upbeat outlook.

The AI software firm posted first-quarter results that exceeded Wall Street expectations and lifted its full-year forecast, highlighting sustained demand across commercial and government segments.

Quarterly Performance

Palantir reported first-quarter revenue of $1.63 billion, topping analyst estimates of $1.54 billion. Adjusted earnings came in at 33 cents per share, ahead of expectations of 28 cents, according to Benzinga Pro.

The company delivered its fastest growth since going public, supported by continued expansion in its U.S. operations.

Management issued second-quarter revenue guidance between $1.797 billion and $1.801 billion, above consensus estimates of $1.679 billion.

AI Platform Momentum

Palantir emphasized strong traction for its Artificial Intelligence Platform, or AIP, which powers enterprise and defense use cases. Management highlighted large contract wins and increasing deployment across industries.

Leadership pointed to the platform’s governance and cost control features as differentiators in scaling AI applications. The company also noted expanding customer relationships and higher contract values.

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