Palantir secured two significant commercial agreements in as many weeks, yet its shares ended the week at €110.66 — a decline of roughly 6% over five trading sessions. The market’s attention has been fixed on regulatory clouds rather than the company’s dealmaking momentum.
The software group announced a multi-year partnership with McCarthy, a major US construction firm. The contract will see building managers use Palantir’s artificial-intelligence platform to analyse risk and coordinate site operations in real time. Separately, the world’s largest law firm, Kirkland & Ellis, committed $500 million to Palantir’s architecture. Central to that deal is the “Fund Formation Engine”, a system that pools the knowledge of more than 1,000 attorneys, separating simple AI reading from rigorous logical checks to eliminate fabricated facts when reviewing complex contracts.
Operationally, the story remains robust. First-quarter revenue surged 85% year over year to $1.63 billion, with the US business nearly doubling. Management subsequently raised its full-year growth forecast to 71%. But these figures have failed to arrest the stock’s slide.
The sell-off has been amplified by sector-wide jitters. The US government ordered the shutdown of Anthropic’s most powerful AI models, Fable 5 and Mythos 5, citing national-security risks. Palantir is not directly tied to Anthropic, but the decision triggered a broad flight from AI-linked equities, wiping out the positive impact of Palantir’s own announcements.
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Across the Atlantic, political headwinds are building. The UK government is reviewing Palantir’s 330-million-pound contract with the National Health Service. Some parliamentarians are calling for early termination in 2027. A final decision on an exit clause is not expected until early that year, leaving the stock exposed to prolonged uncertainty. The company’s governance has also drawn scrutiny; a shareholder proposal for an independent human-rights audit was blocked by the founders’ special voting rights.
Chartists see a precarious technical picture. The stock is down nearly 23% since the start of the year and trades well below its 200-day moving average. The next major support sits at €104.96, the 52-week low. A breach of that level could accelerate selling pressure. The gap to the 52-week high of €179.98 underscores the magnitude of the correction.
Some large investors are using the weakness to build positions. Norway’s central bank established a new stake worth roughly $5 billion, while Vanguard increased its holding by 4%. In contrast, insider David Glazer sold shares, primarily to meet tax obligations. The next earnings report is due in August 2026, when management will need to demonstrate that the rapid revenue growth can be sustained — especially as some technology companies begin curbing AI spending because of rising operational costs.
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