Palantir $PLTR just delivered a double beat, with both revenue and earnings exceeding expectations.
But you wouldn’t know it from the chart.
Despite the solid headline numbers, the stock suffered its worst earnings reaction in over a year.
This is the kind of tape where good news isn’t good enough.
When a high-profile name like Palantir delivers and still gets sold, it tells you all you need to know about sentiment at the moment.
Sure, the business is growing, and the AI story is still intact, but the market doesn’t care.
This wasn’t about fundamentals.
It was about expectations… and clearly, they were too high.
That’s not disappointment in the company, that’s exhaustion in the trade.
So what else did we learn from yesterday's earnings reactions? Let’s dive into the details.
Here are the latest earnings reports from the S&P 500 👇
*Click the image to enlarge it
Constellation Energy $CEG had the best reaction score after reporting mixed results.
The company reported revenues of $6.79B, versus the $5.56B estimate, and earnings per share of $2.14, versus the $2.18 estimate.
Vertex Pharmaceuticals $VRTX had the worst reaction score after reporting a double miss.
The company reported revenues of $2.77B, versus the $2.86B estimate, and earnings per share of $4.06, versus the $4.25 estimate.
Now let's dive into the data and talk about what happened with these reports 👇
CEG had its 2nd-best earnings reaction ever:
Constellation Energy rallied 10.3% after this earnings report, and here's why:
Adjusted operating earnings rose to $2.14 per share, up from $1.82 per share in the same quarter last year.
The company reaffirmed its full-year 2025 adjusted operating earnings guidance range of $8.90 to $9.60 per share.
The nuclear fleet achieved a higher capacity factor (94.1% vs. 93.3% last year), and the natural gas and pumped storage fleet improved its dispatch match rate (99.2% vs. 97.9%).
This company is firing on all cylinders as demand for their energy continues to boom due to the AI revolution.
Since going public in early 2022, the stock has rallied over 800%. This makes it one of the best-performing S&P 500 components during that timeframe.
We see no reason for the uptrend to end here...
If CEG is above 279, the path of least resistance is likely to remain higher for the foreseeable future.
PLTR had its worst earnings reaction in a year:
Palantir fell 12.1% after this earnings report, and here's why:
Operating expenses rose 22% year-over-year, outpacing revenue growth in some categories.
Gross margin decreased from 82% in Q1 2024 to 80% in Q1 2025.
While adjusted operating income and margins were strong (44%), GAAP operating margin was only 20%. The gap is mainly due to high stock-based compensation.
Despite being an impressive company (essentially a publicly traded division of the CIA), it has some notable financial issues that are concerning the market.
Since bottoming in early 2023, the stock has rallied nearly 2,000%. This makes it one of the best-performing S&P 500 components during that timeframe.
The stock found resistance at its all-time high from February, and we anticipate the price to continue trading sideways below this level.
We expect PLTR to trade within a range of 69 to 125 for the foreseeable future.
Thank you for reading.
- The Beat Report Team
PS: $PLTR went 11X. $SMMT hit 5.4X. Several others doubled in under a week. Steve’s not guessing — he’s executing with precision. Be there Thursday at 1 p.m. ET for the full breakdown.
If you find our content valuable, we would greatly appreciate it if you could shareit with your friends, family, and colleagues. Your help in spreading the word is invaluable in supporting our work. Thank you to all of you who share!
