Palantir's 85% Revenue Surge Collides with UK Political Fallout and Inflation Test

For a company that just posted one of the steepest growth trajectories in tech, Palantir's share price tells a very different story. The stock closed Friday at €117.74, down 3.51% on the day and roughly 18% below where it started the year. That disconnect between operating momentum and market performance has left investors trying to weigh a dazzling set of numbers against two looming threats: a political push to eject Palantir from Britain's National Health Service, and the kind of inflation data that can rattle high-valuation stocks instantly.

The immediate catalyst this week is macroeconomic. The US Consumer Price Index for May lands on 10 June, with the Producer Price Index following on 11 June. Both hit at 8:30 am ET. Core CPI is expected to rise 0.2% month-over-month and 2.8% year-over-year; headline CPI, according to Wells Fargo, is seen climbing 0.5% monthly and 4.2% annually. Sticky inflation would push rate expectations higher, punishing stocks whose valuations depend on distant future cash flows. Palantir fits that description perfectly. The next Federal Reserve meeting runs on 16–17 June, making this week's data among the last major inputs before a rate decision.

The Whitehall risk

A more structural threat comes from London. The UK Parliament's Science and Technology Committee has recommended that the government end its partnership with Palantir, calling the company's growing role in the public sector an "unacceptable vulnerability." The committee specifically urged triggering the exit clause in the NHS Federated Data Platform contract, an option that becomes available in February 2027. The concern centres on data privacy and the possibility that US authorities could access sensitive British health records — a sensitive point given Palantir's deep ties to the US defence establishment.

CEO Alex Karp added his own twist to the debate this week, warning that large AI companies risk nationalisation if they fail to address societal risks. Rather than relying on traditional lobbying, Karp urged AI executives to engage more proactively with regulators. The remark underscores an irony: a firm at the centre of the data-security debate is now publicly grappling with the politics of technology control.

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Operating machine running hot

None of this political noise shows up in the numbers. For the first quarter of 2026, Palantir's revenue surged 85% year-over-year to $1.633 billion. Net profit jumped 306%. The "Rule of 40" — a blended metric of revenue growth and operating margin — hit 145%, up from 64% in mid-2024. In the US, growth was even more extreme: revenue climbed 104% to $1.282 billion.

The contract pipeline underscores the breadth of demand. Palantir reported 206 deals worth at least $1 million, including 47 agreements of $10 million or more. The company raised its full-year 2026 revenue forecast to between $7.650 billion and $7.662 billion, implying 71% growth from 2025. For the second quarter, it guided $1.797–$1.801 billion. US commercial revenue alone is anticipated to exceed $3.224 billion, representing growth of at least 120%.

Valuation and insider moves

Strong as those figures are, they haven't insulated the share price. The stock sits 34% below its 52-week high of €179.98, and the trailing weekly loss of 12.25% reflects a market that has turned markedly cautious. Technically, Palantir is trading below both its short-term moving average of €120.78 and its long-term average of €138.14. The relative strength index of 46 is neutral, but the annualised 30-day volatility of over 56% shows how skittish the market has become.

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Insider activity adds another layer of complexity. CEO Alex Karp and CFO Shyam Sankar sold shares in May, a move the company attributed to tax liabilities from stock-option exercises. On the other side, Los Angeles Capital Management boosted its stake to roughly 1.57 million shares in the fourth quarter of 2025. The mixed signals reflect a wider debate: after a 306% earnings explosion and a 145% Rule of 40 score, can the valuation ever catch up to a stock that still trades at several times the growth multiple of peers?

This week's CPI report won't answer that question by itself, but it will set the tone. Softer inflation would give Palantir's battered chart room to attempt a recovery ahead of the Fed. Another hot print would prolong the pain — and remind investors that even the most dazzling growth stock is never immune to the macroeconomic weather.

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