Palantir’s AGM: Ethical Revolt Meets Record Revenue as Stock Stumbles

Institutional investors push for human rights audit and political spending transparency, but dual-class shares ensure defeat. Stock sinks after Trump executive order on AI.

Palantir’s annual shareholder meeting on Wednesday arrives with a double dose of tension: a governance rebellion backed by some of the world’s most powerful institutional investors and a fresh regulatory blow from the White House. The combination has rattled shareholders, turning what is usually a procedural event into a high-stakes referendum on the company’s ethical compass — and its valuation.

At the centre of the storm are two shareholder proposals demanding a human rights impact assessment and greater transparency around political spending. Norges Bank Investment Management, manager of Norway’s $2.3 trillion oil fund, has thrown its weight behind the resolutions, joined by investors controlling at least $336 billion in assets. The New York City comptroller had already called for an independent human rights audit of Palantir’s work with the Department of Homeland Security. ABP, the biggest Dutch pension fund, and Storebrand, a Norwegian asset manager with $109 billion under management, have both sold their stakes — the latter citing sales to Israel for use in occupied Palestinian territories.

Yet the proposals face near-certain defeat. Palantir’s Class F share structure grants founders Peter Thiel, Alex Karp and Stephen Cohen up to 49.999999% of total voting rights as long as they maintain minimum ownership thresholds. Even a landslide among independent shareholders can be neutralised. The board has recommended voting against both resolutions, arguing that Palantir is not a surveillance company, does not trade in personal data, and is constrained by legal and national security obligations from disclosing more. The agenda also includes the election of seven directors, ratification of Ernst & Young as auditor for fiscal 2026, and an advisory vote on executive compensation.

The governance clash comes as the stock endures a turbulent stretch. On Tuesday, the shares slid 5.3% after President Donald Trump signed an executive order requiring AI companies to give the government access to their models up to 30 days before public release and a say in selecting early-access partners. Because Palantir relies heavily on government contracts, the order could hit it harder than most rivals — though the practical impact remains unclear. The slide followed an intraday drop of nearly 6% on June 2, leaving the stock around €127, roughly 29% below its 52-week high. Despite a seven-day rebound of about 15%, the relative strength index sits at 86, signalling short-term overbought conditions. The annualised 30-day volatility is 56%.

Against that backdrop, a pair of Wall Street firms have rushed to the stock’s defence. Rosenblatt Securities sees the pullback as a buying opportunity, pegging upside potential at roughly 60% from the current price around $140. Loop Capital’s Mark Schappel reiterated his buy rating and $220 price target. Both point to Palantir’s role as indispensable infrastructure for AI-driven enterprise customers.

The bull case rests on numbers that are hard to ignore. In the first quarter of 2026, revenue surged 85% year-on-year to $1.633 billion. US revenue jumped 104% to $1.282 billion, with the US commercial segment soaring 133% to $595 million. Adjusted earnings per share came in at $0.33, and the net margin exceeded 50%. Management raised its full-year guidance to $7.65–$7.66 billion, implying roughly 71% growth. CEO Alex Karp regularly notes that these results come from an unusually lean sales force, suggesting the business model is highly scalable.

But the valuation remains the elephant in the room. With a market capitalisation of about $377 billion, the stock trades at 49 times forward sales — a multiple that leaves no room for disappointment. Stock-based compensation alone was $202 million in the first quarter, weighing on GAAP profitability and feeding scepticism. Analysts are broadly at “moderate buy”, but several warn that pricing power and long-term margins face pressure from Microsoft Azure, AWS, Google Cloud, OpenAI and Anthropic.

The next big test arrives with the second-quarter earnings report, which will show whether Palantir can sustain the momentum that underpins today’s ambitious price targets. For now, Wednesday’s AGM will reveal how loudly institutional critics can speak — even if the voting mechanics have already decided the outcome.