The stock of Palantir Technologies fell Tuesday morning as investors were unimpressed by its outlook for annual sales. The defense tech company’s stock was down over 13%, trading at $22 in the morning action.

In its latest earnings report posted Monday, the company beat analyst revenue expectations citing demand by U.S. companies for its bootcamps and technology products. The company reported $634 million in revenue, while expectations were $615 million, according to FactSet. Palantir revenue grew 21% year-over-year and 4% quarter-over-quarter; its earnings per share were in line with expectations of 8 cents.

But the company forecasted a decrease in revenue for the current quarter, with an estimated value between $649 million to $653 million. This is lower than the $653 million that analysts were expecting. Additionally, the company projected full-year revenue between $2.68 billion and $2.69. billion, weaker than Wall Street’s analysts estimated value of $2.71 billion.

The company closed 87 deals worth at least $1 million in the first quarter, including 27 that were at least worth $5 million and 15 that were worth at least $10 million, according to its earnings report. But Palantir’s U.S. commercial revenue growth slowed significantly, falling to 40% from 70% in the previous quarter.

Louie DiPalma, an analyst at William Blair, reiterated an Underperform rating on the stock, writing that “we do not believe the company’s U.S. commercial momentum is sustainable.”

Palantir develops AI tools for military and intelligence agencies. The company has been one of the marquee stocks of the tech world’s current AI frenzy, with new products helping to catapult it more than 200% over the last 12 months. In the first quarter of 2024, Palantir was awarded $178 million by the U.S. Army to develop deep-sensing capabilities for an AI-powered vehicle.

—Britney Nguyen contributed to this article.