Palantir’s Revenue Growth Slows as U.S. Government Delays Contracts

Various federal government agencies, including the Department of Defense and the Department of Health and Human Services, have contracted with Palantir on projects that range from Covid-19 data services to airspace data management.

“These contracts do not disappear,” Mr. Karp said. “Sometimes, they are put off. Sometimes, they take too long for us to get them.”

Shares of Palantir fell 14% to $9.83 in premarket trading. The stock is down 37% so far this year.

The company on Monday projected sales of $474 million to $475 million in the current quarter, which would mark growth of up to 21% from a year earlier. That would be the slowest growth rate since the company made its public market debut in 2020. Analysts had projected sales of $499.7 million for the current quarter, according to FactSet.

For the full year, Palantir expects revenue of $1.9 billion to $1.902 billion, below Wall Street expectations for $1.96 billion. The company also guided for adjusted operating income of $341 million to $343 million. Palantir said the guidance assumes the company won’t win any new major U.S. government awards this year.

The guidance would also mark sales growth of up to 23% over 2021 sales, below Palantir’s long-term guidance for at least 30% annual revenue growth.

The view came as Palantir reported that sales in the second quarter rose 26% to $473 million, beating analysts’ expectations of $465.8 million. The company also saw its loss widen to $179.3 million, or 9 cents a share, from $138.6 million, or 7 cents a share.

Stripping out items such as stock-based compensation, the company said it lost a penny a share on an adjusted basis. Analysts surveyed by FactSet were looking for an adjusted profit of 3 cents a share.

Finance chief

David Glazer

said the company would have posted an adjusted profit for the quarter, but losses from investments lowered adjusted earnings by 5 cents a share.

Write to Will Feuer at [email protected]