While Palantir Technologies Inc. shares demonstrated significant technical strength this week, closing at $193.98 on Monday, the data analytics firm is confronting mounting skepticism from European officials. The criticism centers on data security, casting a shadow over its international growth ambitions.
Security Fears Prompt Contract Rejection and Political Backlash
A recent investigation by Swiss media outlets WAV and Republik has revealed that the Swiss military, after a seven-year evaluation, decided against awarding a contract to Palantir. The primary reason cited was unresolved uncertainty regarding potential access to shared data by U.S. intelligence agencies, despite the company’s assurances to the contrary.
Cost considerations and Palantir’s requirement for a permanent on-site specialist team also contributed to the decision. The revelation has triggered political reactions in the United Kingdom. Labour MP Clive Lewis has urged the government to distance itself from Palantir, specifically concerning contracts with the National Health Service (NHS). His colleague, Rachael Maskell, has called for transparent audits of Palantir and other major technology corporations.
Palantir has firmly denied the allegations. A company spokesperson stated that claims of possible data access by third parties are entirely without foundation, emphasizing that its business model is built on client trust. This controversy emerges at a sensitive time, following the British Ministry of Defence’s signing of a £750 million contract with Palantir in 2024 to advance military artificial intelligence capabilities.
Robust Financial Performance and U.S. Momentum Underpin Valuation
Despite the European headwinds, the company’s equity performance remains powerful. The stock broke through the key technical level of $190.39 on December 19 and has appreciated approximately 150% since the start of the year. This performance places Palantir eighth among S&P 500 constituents and third within the Nasdaq-100 index.
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This market strength is supported by solid operational results. For the third quarter of 2025, revenue surged 63% to $1.18 billion. Its U.S. commercial business segment saw extraordinary growth of 121%. The adjusted operating margin reached 51%. The company has also secured substantial strategic contracts, including a U.S. Army deal in July worth up to $10 billion over a decade and a $448 million U.S. Navy contract awarded in December for submarine supply chain management.
Valuation, however, remains a point of debate. The stock’s price-to-sales ratio trades significantly above the industry average. Proponents highlight Palantir’s deep integration into client operations and its AI platform, AIP. Skeptics caution against excessive optimism, noting that current valuations exceed historic peaks from the dot-com era.
Looking Ahead: Earnings and the Growth Trajectory
The company is scheduled to report its fourth-quarter results on February 2, 2026. For the full year 2025, Palantir has provided revenue guidance in the range of $4.396 billion to $4.400 billion, representing growth of about 53%. It expects its U.S. commercial business to expand by a minimum of 104%.
The ongoing security debates in Europe are likely to present challenges for Palantir’s international expansion efforts. In contrast, its core U.S. government and commercial operations continue to show robust momentum, creating a complex narrative for investors weighing geopolitical risks against fundamental financial strength.
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