Palantir (PLTR) raised its full-year outlook on 🦋strong demand for it🍸s AI software, but shares slipped in extended trading Monday as the company's earnings failed to impress.

Palantir projected second-quarter sales of $934 million to $938 million, and full-year revenue of $3.89 billion to $3.9 billion, up from $3.74 billion to $3.76 billion previously. Both ranges were well above Wall Street analysts' projections compiled by Visible Alpha.

"The rush towards large language models, as well as the foundational software architecture that is capable of making them valuable to large organizations, has turned into a stampede," CEO Alex Karp said in a letter to shareholders.

"We believe our results are indicative of a revolution sweeping across our business and industry," he said.

The company reported first-quarter revenue of $884 million, up 39% year-over-year and above the analyst consensus. Adjusted earnings per share of 13 cents, rose from 8 cents per share a year earlier, in line with Wall Street’s estimates. Investors may have been looking for more, after the AI darling posted blowout results in February and November.

Palantir shares tumbled close to 9% in after-hours trading. The stock was up over 63% for 2025 through Monday's close and nearly 400% over the past 12 months.

This article has been updated since it was first published to include additional information and reflect more recent share price values.