Palantir Technologies Inc., the US-based data analytics firm, has announced a significant new agreement with the United Kingdom’s Ministry of Defence (MoD). The three-year contract, valued at £240.6 million (approximately €285 million), arrives during a period of notable pressure on the company’s share price, which has declined roughly 30% over the past month.

A key aspect of the deal is its procurement method. The UK defence authorities awarded the contract directly to Palantir without a competitive tender process, invoking a national security exemption. Market observers interpret this as a strong signal of the company’s entrenched competitive position, or „moat.“ The software platform has become so deeply embedded within the ministry’s strategic and operational decision-making frameworks that switching to an alternative provider appears impractical in the near term. This continuation of critical data analytics capabilities is set to commence on April 1.


Should investors sell immediately? Or is it worth buying Palantir?

Investor Focus Shifts to Forthcoming Earnings

For investors, the contract announcement serves as a positive operational development following a substantial share price correction. The stock’s retreat has pushed it more than 35% below its 52-week high, shifting attention to the fundamental drivers that could justify its valuation.

While the government deal stabilizes outlook for the public sector segment, the market is increasingly scrutinizing Palantir’s commercial growth trajectory. Recent developments, such as an expanded partnership with HD Hyundai, point to progress on that front. However, the next major catalyst is scheduled for Monday, February 2, 2026. After the US market closes, Palantir will release its fourth-quarter financial results and provide guidance for the upcoming fiscal year. This report is widely anticipated to clarify whether the current market valuation is sustainable.

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