Palantir Technologies Inc. experienced a decline in its share price during extended trading on Monday, despite modestly raising its annual revenue forecast. The company's shares dropped by as much as 11% following the announcement, signaling investor concerns despite significant growth over the past year.

While Palantir nudged its annual revenue forecast slightly higher to a range of $2.68 billion to $2.69 billion, analysts had expected a similar figure. Additionally, the company raised its outlook for adjusted operating income, which fell within the expectations of analysts.

The stock's decline reflects investor skepticism towards the company's outlook, despite its impressive growth over the past year. Palantir, known for its software and analysis tools used by companies and government agencies, has seen its stock price triple in the last 12 months, making it a notable player in the current tech industry AI frenzy.

Despite its success in the US market, particularly with commercial customers, Palantir reported challenges in its international commercial business, particularly in Europe. The company attributed this decline to economic headwinds in the region, particularly in light of sluggish GDP growth projections.

Palantir's strategy of conducting boot camps to quickly onboard customers has proven successful in the US, contributing to a significant increase in commercial customers during the first quarter. However, concerns remain about the sustainability of this growth, particularly in light of modest billings growth and potential challenges in pipeline visibility.

Overall, Palantir reported strong sales for the first quarter, surpassing analyst expectations. However, the company's outlook for the current quarter, while positive, did not fully alleviate investor concerns, leading to a decline in its share price during extended trading.