PLTR & HIMS Deliver Strong Q1 2025 Results

Both Palantir Technologies (PLTR) and Hims & Hers Health (HIMS) reported their Q1 2025 earnings on Monday after hours, and both showed signs of rapid, and impressive growth. 

However, the market’s reaction (especially to Palantir) suggests investors may be weighing more than just numbers with today's complex market. 

PLTR: Great, But Not “Stellar”? Market Reacts with a Pullback

Palantir delivered VERY strong results:

• Revenue: $884M (+39% YoY)

• Net Income Margin: 24% (profitable for the 7th consecutive quarter)

• U.S. Commercial Revenue: $255M (on a $1B run rate)

• FY 2025 Guidance: $3.89B to $3.902B (vs. consensus of $3.74B)

• Rule of 40: 83

Despite these metrics, the stock dropped more than 12% after hours.

This may seem confusing to retail investors, but it reveals something deeper: expectations were sky-high. With CEO Alex Karp declaring “Palantir is on fire,” many investors were expecting stellar numbers not just great ones.

Some skepticism may also stem from the slower growth in Palantir’s European commercial segment. Based on my experience, European companies tend to be slower in adopting new technologies, especially platforms as disruptive as Palantir’s. That friction may have led to a perception that international commercial acceleration could lag behind the U.S. and hinder future growth. 

Investors may also fear Palantir is approaching an era of decelerating growth. While I strongly disagree with that narrative, it could explain the reaction. Once a growth stock trades at a high multiple it’s held to extremely high standards. Any perceived slowdown triggers concerns about valuation. And thats what we have here. 

That said, I remain highly confident in Palantir’s long-term trajectory. Their AI and defense edge, combined with increasing commercial adoption in the U.S., will catapult them into $1 trillion territory in the next 2–3 years. If that happens, a stock price of $400 is within reach. 

It might seem far-fetched now, but remember just a few years ago, companies like Meta, Netflix, and Nvidia faced similar skepticism over their valuations. Those doubts didn’t age well. If anything, it highlights how often Wall Street’s institutional investors lag behind in understanding and valuing transformative technologies like PLTR. 

I am still bullish as ever especially with these guys, especially considering where I think they are headed with the FDEs. 

HIMS: More Than Just a GLP-1 Play

I recently posted that my latest high conviction investment was in fact HIMS. And wow was that an awesome pick. 

Hims & Hers delivered a standout quarter:

• Revenue: $586M (+111% YoY)

• Net Income: $49.5M

• Adjusted EBITDA: $91.1M (nearly tripled YoY)

• Subscribers: 2.4M (+38%)

• Average Revenue per Subscriber: $84 (+53%)

• FY 2025 Revenue Guidance: $2.3B to $2.4B

Much of the media coverage focused on the company's rollout of GLP-1 weight-loss drugs, including oral and injectable options. That’s a significant growth driver but there’s more to be excited about.

I’m extremely bullish on three key developments:

1. New COO from Amazon: Amazon alumni often bring exceptional operational discipline and scaling experience. This hire could unlock significant efficiencies and execution capabilities.

2. International Expansion Plans: With 2.4M subscribers largely concentrated in North America, HIMS has massive untapped potential overseas (Australia, New Zealand, UK seem like logical places for expansion).

3. Expanding Treatment Portfolio: They’re preparing to roll out targeted treatments for low testosterone in men and menopause in women. These are pressing social and health issues that affect millions and they fit naturally within the HIMS brand and telehealth infrastructure.

Combine these with their GLP-1 offerings, and HIMS is building a comprehensive wellness platform. Their growth is just getting started.

Two Winners, Two Market Reactions

Both companies are growing at an extraordinary pace, this is growth that legacy firms would envy. A 40% & 110% year-over-year revenue increase isn’t just impressive; it’s rare. I still remember in business school, we were taught that 10% annual growth was considered excellent. By that standard, what PLTR and HIMS are achieving is nothing short of phenomenal. 

But the initial remark response saw PLTR drop about 10% and HIMS pop almost 20%. 

The difference in market response speaks volumes about investor psychology:

• PLTR fell due to sky-high expectations, possible misinterpretations about European growth, and valuation concerns.

• HIMS surged due to positive surprises, operational momentum, and a clear vision for growth.

I put partial blame on this due to the market uncertainty we have with tariffs, if this news was given after a green day, I think both companies stocks would pump significantly more. But anyways, as long-term investors, we must look beyond the short-term price action. 

Fundamentals, leadership, and product-market fit will ultimately win, and both these companies are positioning themselves at the center of massive, long-term trends.

TLDR: Bullish on PLTR, bullish on HIMS.