Palantir’s legal fight for a contract with the Metropolitan Police has hit a procedural snag that prolongs uncertainty for the company’s British public-sector ambitions. The High Court in London rejected Palantir’s request for an earlier hearing, pushing the trial’s start to January. That means a resolution is unlikely before 2027, leaving investors to weigh the risk against the company’s still-growing commercial business.
The stock ended the week at €111.02, down 1.7% on the day and 1.12% lower over the past five sessions. Since the start of the year, Palantir has shed 22.42% of its value, and it now trades 38.32% below the 52-week high of €179.98 reached last November. A partial recovery from the June low of €93.30 — roughly 19% — has failed to reignite bullish momentum.
CEO Takes Aim at Rival Pricing Models
While the legal clock ticks, chief executive Alex Karp has turned his rhetorical fire on the industry’s dominant pricing structure. Token-based billing, used by OpenAI and Anthropic, is “completely wrong” for enterprise clients, Karp said over the second weekend of July. His argument: businesses increasingly want to pay for outcomes, not for raw compute tied to data volume.
Karp described an “invisible infrastructure” — electricity, data centres, secure communications — as the real competitive edge that underpins artificial intelligence systems. The models themselves, he argued, are becoming commoditised; the supporting layer is where value will be captured.
Political Pressure Mounts in Europe
The legal dispute in London is not an isolated incident. In Italy, the government has halted the expansion of cooperation with Palantir, restricting ties to limited defence contracts amid EU concerns over data sovereignty. Across the English Channel, a cross-party group of British MPs on the health select committee renewed calls to review Palantir’s £330 million contract with the National Health Service. They cited “serious mistrust” over patient-data handling and recommended triggering an exit clause that becomes available in early 2027.
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The Metropolitan Police contract itself was vetoed in May by London mayor Sadiq Khan, who argued the procurement process was flawed because the force engaged only one supplier. Palantir counters that Khan’s office improperly considered the company’s “values and ethics.” The High Court will now have to settle that point next year.
Growth Deals Still Flowing Despite Headwinds
Away from the regulatory glare, Palantir has been quietly expanding its commercial footprint. In early July it announced a partnership with GNP Seguros, Mexico’s largest insurer — the first publicly disclosed major client in Latin America. It also signed a strategic collaboration with SNP to speed up and secure SAP transformations for corporate customers.
Analyst sentiment remains split. DA Davidson recently upgraded the stock from Neutral to Buy with a $175 price target, calling Palantir an “AI orchestration layer” that lets companies switch between different models without vendor lock-in.
Technicals Point to Neutral Territory
On the charts, the shares are trading 3.27% below their 50-day moving average of €114.78 and 16.90% below the 200-day average of €133.60. The relative strength index sits at 48.8, indicating neither overbought nor oversold conditions. With annualised volatility above 53%, the stock remains sensitive to news from the regulatory front.
The market’s next catalyst will be second-quarter earnings, due in the coming weeks. Analysts expect earnings per share of roughly $0.28, a sharp improvement from a year earlier. Whether Palantir can narrow the gap back toward its 52-week high will hinge on how convincingly it demonstrates the scalability of its AIP platform during the next earnings call — and whether the legal and political clouds start to lift.
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