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Will Top-Line Improvement Benefit Palantir in Q1 Earnings?

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Palantir Technologies Inc. (PLTR - Free Report) will report its first-quarter 2025 results on May 5, after the bell.

We expect a significant year-over-year improvement in the company’s top line in the to-be-reported quarter, driven by healthy business from existing, as well as new customers, strengthening both Government and Commercial segments. The current Zacks Consensus Estimate for total revenues stands at $862.9 million, indicating 36% growth from the year-ago reported quarter.

Going by segments, the consensus estimate for Government revenues is pegged at $460 million, indicating 37.4% year-over-year growth. Palantir’s continued work in health care and defense is likely to have significantly benefited the Government segment in the quarter.

The consensus mark for Commercial revenues is pegged at $405 million, indicating 35.4% year-over-year growth. These revenues are likely to have benefited from contributions from new as well as existing customers and expansions. The company has witnessed growth across multiple industries.

PLTR currently carries a Zacks Rank #5 (Strong Sell).

Stocks That Warrant a Look

Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season. 

FIS (FIS - Free Report) : The Zacks Consensus Estimate for first-quarter 2025 revenues is pegged at $2.5 billion, indicating growth of 1.9% from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at $1.20 per share, suggesting a 9.1% rise from the year-ago quarter’s reported number. FIS surpassed the consensus estimate in the past four quarters, with an average beat of 9.4%. 

It has an Earnings ESP of +0.88% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

It is scheduled to declare its first-quarter 2025 results on May 6. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) 

Booz Allen Hamilton (BAH - Free Report) : The Zacks Consensus Estimate for fourth-quarter fiscal 2025 revenues is pegged at $3 billion, indicating an 8.9% growth from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at $1.59 per share, suggesting a 20% increase from the year-ago quarter’s reported number. BAH surpassed the consensus estimate in three of the past four quarters and missed once, with an average beat of 6.7%. 

It has an Earnings ESP of +5.74% and a Zacks Rank of 3. It is scheduled to declare its fourth-quarter fiscal 2025 results on May 23.

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