When Palantir Technologies (PLTR) reports first-quarter earnings after the market close on Monday, analysts will be looking for another strong quarter from U.S. commercial market growth. Traction in artificial-intelligence-related sales will also be key for Palantir stock.

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For the quarter ended March 31, analysts predict Palantir earnings of 8 cents a share using generally accepted accounting principles, or GAAP, up 60% from a year earlier. The maker of data analytics software’s revenue is expected to rise 19% to $615 million.

Analysts project government revenue of $322 million and commercial sales of $292 million. In the fourth quarter of 2023, U.S. commercial sales jumped 70%.

“With the AI Revolution now quickly heading towards the key use case and deployment stage, Palantir with its flagship AIP platform and myriad of customer boot camps is in the sweet spot to monetize a tidal wave of enterprise spend now quickly hitting the shores of the tech sector in our opinion,” said Wedbush analyst Daniel Ives in a preview of Q1 results. “The big focus tonight will be hearing about AIP customer conversion, U.S. commercial strength momentum and the trajectory of larger deals in the pipeline.”

Palantir Stock Soared 233% Vs. Past Year

Further, Palantir has been upgrading products with generative artificial intelligence tools. Also, Palantir rolled out its “Artificial Intelligence Platform” in early 2023.

On the stock market today, PLTR stock rose nearly 6% to 24.71 in midday trading. Heading into the Palantir earnings report, shares are up 44% in 2024. Palantir stock has jumped 233% over the past year amid buzz over generative artificial intelligence technology.

Further, Palantir is among AI stocks to watch.

Palantir has already mined the AI opportunity with government customers for intelligence gathering, counterterrorism and military purposes. Now Palantir aims to use generative AI to spur growth in the commercial market. The software maker has expanded into health care, energy and manufacturing.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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