The data analytics firm Palantir is navigating a storm on two fronts: a swelling public backlash in the UK and a sector-wide selloff that erased more than 7% of its share value in a single session. With first-quarter results due in early May, the company faces a critical test of whether its blistering US growth can offset mounting political and market pressures.
UK Petition Crosses 229,000 Signatures
Opposition to Palantir’s government contracts in Britain has escalated into a full-blown campaign. A petition organized by the advocacy group 38 Degrees has gathered over 229,000 signatures, targeting a £330 million agreement with the National Health Service. Critics argue the company’s involvement in surveillance and defense projects abroad makes it an unsuitable custodian of sensitive patient data. The controversy extends beyond the NHS — contracts worth roughly £600 million with the Ministry of Defence and multiple police forces are also under scrutiny.
Palantir has defended its record, arguing its technology improves efficiency and safeguards public infrastructure. So far, that message has failed to quiet the political noise.
Insider Sales and Institutional Exits
The public pressure is mirrored by moves in the capital markets. Several institutional investors have trimmed their exposure. The Arizona State Retirement System sold approximately 20,900 shares, leaving it with 640,375. Cadinha & Co. LLC went further, offloading more than 54% of its stake.
Insider activity has been equally telling. Over the past 90 days, executives including Shyam Sankar and Stephen Cohen have collectively sold more than one million shares, worth around $137 million.
A Sector Contagion Hits
The domestic picture turned sour on Thursday when Palantir’s stock slumped 7.2%, caught in a downdraft that swept through the enterprise software space. The trigger came from two directions: IBM reported lackluster first-quarter revenue growth, while ServiceNow cratered roughly 18% after citing delayed contract closures in the Middle East tied to stalled US-Iran negotiations. ServiceNow also warned that AI investments would pressure margins in the near term.
The selloff spread quickly. Salesforce fell 4.5%, Oracle dropped 3%, and Intuit shed nearly 3%. For Palantir, the decline was thematic rather than company-specific — investors are increasingly debating whether AI tools will cannibalize demand for traditional enterprise software.
Valuation Remains the Elephant in the Room
Even after the recent pullback, Palantir commands a market capitalization of roughly $338 billion. Its price-to-earnings ratio sits at 200 times trailing earnings, while the forward multiple is 118 times. The price-to-sales ratio stands at 87 times. Those are multiples that leave no room for disappointment.
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Analysts also anticipate a structural slowdown in government revenue growth, from recent elevated rates to 42% in 2026 and 31% in 2027. That trajectory puts additional pressure on the commercial segment to deliver.
The stock currently trades around €124, roughly 13% below its level at the start of the year and about 31% off its 52-week high from late 2025.
A $300 Million USDA Win Offers Counterbalance
On the positive side, Palantir’s US federal business continues to gain traction. On April 22, the Department of Agriculture signed a $300 million framework agreement to support the “One Farmer, One File” initiative, aimed at protecting agricultural programs from fraud and foreign interference. The deal builds on an existing platform that already processes a multibillion-dollar farm subsidy program.
That win underscores the strength of Palantir’s government pipeline, which in the previous quarter saw US commercial revenue surge 137%.
Earnings Day Approaches
Palantir is scheduled to report first-quarter results on May 4 after the US market close — or May 5 in European time. Management guided for revenue in the range of $1.532 billion to $1.536 billion, while analysts expect earnings per share of $0.28, up from $0.13 a year earlier.
The numbers themselves are likely to be strong. In the fourth quarter of 2025, overall revenue grew 70% to $1.41 billion, and full-year 2025 revenue rose 56% to $4.48 billion. The company holds $7.2 billion in net liquidity and carries no debt.
But the market’s focus will be less on the raw growth and more on whether it is fast enough to justify a valuation that punishes any misstep. The interplay between European political risk, sector-wide anxiety, and the US government engine will determine whether this earnings report brings relief or adds to the pressure.
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