Inside Palantir’s Quiet Expansion: New Cloud and AI Deals Mask a Stock Stuck in Neutral

Palantir announces three new partnerships (Rackspace, GNP, SNP) and strong Q1 earnings with 85% revenue growth, but stock down 20% YTD due to high valuation.

Palantir Technologies has been on a dealmaking spree, announcing three commercial partnerships in rapid succession — yet the market response has been muted at best. On July 10, the company and Rackspace Technology unveiled a joint operating-model framework designed for regulated and sovereign enterprises, combining Palantir’s Foundry and AIP with Rackspace’s private cloud, sovereign cloud, on-premise infrastructure and managed operations. Rackspace becomes Palantir’s preferred partner, having built roughly 400 Palantir certifications since February 2026. The offering targets healthcare, financial services, energy and government clients. Separately, reports emerged that Palantir is collaborating with Nvidia to develop AI platforms for government agencies, merging its software with Nvidia’s hardware.

The partnership push extends well beyond North America. On July 7, Palantir announced an expanded relationship with Mexican insurer GNP Seguros — its first publicly named commercial client in Latin America. GNP is deploying Foundry and AIP for fraud detection, risk monitoring and underwriting. A day later at SAP’s Transformation World event in Heidelberg, Palantir struck a strategic alliance with SNP SE, a provider that boasts more than 3,000 customers and over 15,000 SAP projects. The first joint product, dubbed “Test Data Proposal,” is an AI tool that automates the identification of test data for SAP migrations and extends SNP’s Kyano platform. SNP also added a new AI layer called Kyano Lorna, which the company says accelerates decision-making and operates around the clock in multiple languages.

Operationally, the numbers remain strong. In the first quarter of 2026, Palantir posted earnings per share of $0.33 on revenue of $1.63 billion — a year-over-year increase of roughly 85% that comfortably beat consensus estimates. The management team has responded by lifting its full-year revenue forecast to approximately $7.65 billion, implying annual growth of about 71%. That blistering pace, particularly in the US commercial segment, has done little to quiet valuation skeptics, however. The stock trades at a price-to-sales ratio of roughly 43 times forward revenue and a price-to-earnings multiple of about 93. Even the most forgiving analysts describe those levels as demanding. The consensus rating remains “Moderate Buy,” with a price target of $190.85.

At the moment, Palantir’s shares are changing hands at €113.78, up 0.78% on the session after closing at €112.90 the previous day. On a weekly basis the gain is 1.34%, while the monthly performance is a modest 0.80%. The longer-term picture is far less flattering: the stock has shed 20.49% since the start of the year and is 6.57% lower over the past twelve months. The 52-week high of €179.98, set on November 3, 2025, now lies 36.78% above the current price, while the 52-week low of €93.30 from June 26, 2026 represents a 21.95% gap. The 50-day moving average of €114.83 sits only slightly above the current level, but the 200-day moving average of €133.62 stands well overhead — a sign that the medium-term trend remains under pressure. The relative strength index of 52.2 points to a neutral reading, while annualized 30-day volatility of 53.16% underscores the stock’s turbulent nature. The market capitalisation stands at €281.62 billion.

Insider activity continues to stir unease. Chief technology officer Shyam Sankar sold additional shares in early July, adding to the more than $150 million in insider disposals recorded over the past three months. CEO Alex Karp offloaded roughly 400,000 shares in May, though such transactions typically run through pre-arranged trading plans. Institutional investors are sending mixed signals: Ibex Wealth Advisors trimmed its position by a mere 3.6% in the first quarter, while Main Street Research slashed its stake by 61.9%. Cathie Wood’s ARK Invest, by contrast, snapped up more than 81,000 shares in late June, betting on the recent pullback. Political headwinds also linger; some analysts argue that Palantir’s close ties to the Trump administration could jeopardise European contracts — a risk that grows more salient as the company pushes into Latin America and Europe with its latest alliances.