Palantir Shares Fall 9% Despite Q1 Strength, As Investors Take Profits And Analysts Flag Slowing EPS Growth

Palantir dropped over 9% in after-hours trading Monday, even as the company reported strong first-quarter results and lifted its 2025 guidance, according to MarketWatch. CEO Alex Karp called the company “on fire,” highlighting guidance increases for revenue, operating income, and free cash flow. Veteran trader Mark Minervini noted that Palantir’s strong performance may already be reflected in its stock price, as the market anticipates future outcomes. Analysts expect the company’s EPS growth to slow sharply over the next two quarters. Investors took profits after a 64.6% year-to-date gain, with the stock near technical overbought levels and trading at nearly 189 times forward earnings.