06:43 AM EDT, 05/06/2025 (MT Newswires) -- Palantir Technologies ( PLTR ) raised its full-year guidance as it recorded first-quarter revenue above market expectations, though earnings were in line with estimates, while the software maker issued an upbeat sales outlook for the ongoing three-month period.

The company now anticipates revenue to come in between $3.89 billion and $3.9 billion for 2025, it said late Monday, up from its previous projections of $3.74 billion to $3.76 billion. The current consensus on FactSet is for $3.85 billion. US commercial revenue is pegged to grow by at least 68%, compared with the prior forecast for a 54% increase.

Adjusted income from operations is expected to be in a range of $1.71 billion to $1.72 billion for the current year, up from the previous guidance of $1.55 billion to $1.57 billion.

"We are in the middle of a tectonic shift in the adoption of our software," Chief Executive Alexander Karp said in an earnings release. "Consequently, we are raising our full-year guidance for total revenue growth."

For the second quarter, the software maker is targeting revenue of $934 million to $938 million, while the Street is looking for $922.5 million. Adjusted income is expected to be at $401 million to $405 million.

Palantir ( PLTR ) shares dropped 8.8% in Tuesday's most recent premarket activity.

The company posted adjusted earnings of $0.13 per share for the March quarter, matching Wall Street's expectations, up from $0.08 the year before. Revenue climbed 39% year over year to $883.9 million, ahead of the average analyst estimate on FactSet for $862.2 million.

US revenue, which now makes up 71% of the firm's overall top line, jumped 55% on a yearly basis to $628 million, Chief Revenue Officer Ryan Taylor said during an earnings call, according to a FactSet transcript. US commercial revenue soared 71% to $255 million while government revenue advanced 45% to $373 million.

"Unrelenting demand for (artificial intelligence platform) continues to drive outperformance despite (the first quarter) historically being our slowest quarter due to business seasonality," according to Taylor. "Our US commercial revenue grew 19% sequentially to surpass the $1 billion annual run rate for revenue in (the first quarter)."

The number of customers grew 39% year over year and 8% on a sequential basis to 769, Chief Financial Officer David Glazer said on the call. "Revenue from our largest customers continues to expand," Glazer told analysts.

The company closed 139 deals of at least $1 million. US commercial total contract value stood at $810 million, up 183% on a yearly basis, while remaining deal value spiked 127% to $2.32 billion. "On a trailing 12-month basis, we closed over $2 billion of US commercial (total contract value) bookings, highlighting the demand for AI production use cases," according to Glazer.