06:42 AM EDT, 05/07/2024 (MT Newswires) -- (Updates with the stock move and analyst comments in the first, sixth, seventh, and eighth paragraphs.)

Palantir Technologies ( PLTR ) shares slumped 10% in recent premarket Tuesday after the company's Q1 results showed a sharp sequential slowdown in US commercial revenue growth.

The company reported Q1 adjusted earnings late Monday of $0.08 per diluted share, up from $0.05 a year earlier.

Analysts surveyed by Capital IQ expected $0.08.

Revenue for the quarter ended March 31 was $634.3 million, up from $525.2 million a year earlier.

Analysts surveyed by Capital IQ expected $617.6 million.

However, US commercial revenue grew 40% year-over-year in Q1, versus 70% year-over-year in Q4.

Ahead of the company's Q1 results, Wedbush Securities said in a research note that "the big focus tonight [late Monday] will be hearing about AIP customer conversion, US commercial strength momentum, and the trajectory of larger deals in the pipeline."

RBC Capital Markets Software Equity Analyst Rishi Jaluria attributed the slow US commercial growth to Palantir's ( PLTR ) status as an "over-hyped generative AI beneficiary company," according to a news report from Yahoo Finance.

The company expects Q2 revenue of $649 million to $653 million. Analysts surveyed by Capital IQ expect $643.4 million.

Palantir ( PLTR ) raised its full-year 2024 revenue guidance to between $2.68 billion and $2.69 billion from between $2.65 billion and $2.67 billion. Analysts surveyed by Capital IQ expect $2.68 billion.

Price: 22.75, Change: -2.46, Percent Change: -9.76