Palantir Technologies Inc., whose stock led the S&P 500 in gains this year, dropped about 9% in premarket trading on Tuesday after its financial results failed to live up to investors’ loftiest expectations.

Palantir Technologies ( PLTR -12.95%) stock had plunged 14% as of 10 a.m. ET on Tuesday, May 6, as investors reacted to its first-quarter financial results. The company reported solid results amid continued demand for its artificial intelligence (AI) platform, but the market clearly had higher expectations.

Shares of Palantir Technologies (NASDAQ:PLTR) tumbled 12% Tuesday morning after the artificial intelligence data analytics firm handily beat analyst first-quarter revenue and earnings forecasts while also raising its full-year outlook.

Shares of Palantir Technologies slumped about 7% in premarket trading on Tuesday, after quarterly results and a raised forecast failed to meet the high expectations of Wall Street investors, who had driven the stock price up significantly ahead of earnings.

Palantir raised its full-year outlook on strong demand for its AI software, but shares slipped in extended trading Monday as the company's results failed to impress.