Palantir’s Swiss Central Bank Backer Stands Firm as a £330 Million NHS Contract Teeters

Swiss National Bank defends Palantir stake amid activist pressure, UK contracts face scrutiny, and DZ Bank initiates buy coverage as Q1 revenue growth surges.

With first-quarter earnings due in just over a week, Palantir finds itself navigating a tricky cross-current of political backlash and institutional support. The stock is trading roughly 30% below its 52-week high, even as the company has locked in a string of government contracts and delivered blistering revenue growth.

SNB Rebuffs Activist Demands to Dump $1.1 Billion Stake

The most high-profile governance clash of the week unfolded in Bern. Activists from Minneapolis used the Swiss National Bank’s annual shareholder meeting to demand that the central bank divest its Palantir holdings, arguing the company’s software is used by US immigration authorities and surveillance operations.

SNB President Martin Schlegel pushed back. While declining to comment on individual positions, he stressed that the central bank’s foreign-exchange portfolio is designed for monetary policy purposes and must remain liquid and preserve long-term value under a market-neutral approach. As of the end of 2025, the SNB held roughly 6.2 million Palantir shares — a stake worth around $1.1 billion.

Not every large investor has shown such resolve. Nordic financial services firm Storebrand Asset Management has already sold its Palantir position.

UK Growth Story Meets Political Headwinds

The SNB dispute is part of a broader pattern of scrutiny. In Britain, Palantir’s business is expanding rapidly, but so is the political opposition. The Metropolitan Police is exploring a major deployment of Palantir software to automate crime-data analysis — the force already uses experimental tools from the company to detect internal misconduct. A new contract would dramatically widen the partnership with the UK’s largest police force.

Meanwhile, another big-ticket deal is wobbling. The British government is reviewing whether to exit early from a £330 million contract with the National Health Service. Health Minister Zubir Ahmed has not ruled out switching to a competitor. An exit clause kicks in during spring 2027.

Parliamentary pressure is mounting. Critics cite inadequate data protections and the fact that the NHS would retain no software rights after the contract ends. Committee chair Chi Onwurah has called these concerns legitimate and substantive, pushing back on Palantir’s claim that the criticism is purely ideological.

DZ Bank Initiates Coverage with a Buy

Amid the political noise, analyst coverage is expanding. DZ Bank started coverage with a buy rating and a $175 price target. Of the 29 analysts tracking the stock, 17 rate it a buy, with the average 12-month target sitting around $195.

The bulls point to the underlying business momentum. For the first quarter of 2026, Wall Street expects revenue of $1.54 billion — a 74% year-over-year jump — and earnings of $0.28 per share. Palantir’s own guidance from the prior quarter aligns almost exactly with those estimates.

The US commercial business remains the standout driver. Domestic commercial revenue more than doubled in the fourth quarter, while government revenue grew 66%. That combination of rapid growth and high profitability is rare in the tech sector.

Valuation Leaves No Room for Error

Despite the strong operational performance, the stock has lagged other AI names. Trading at roughly €123, it sits just below its 50-day moving average. The price-to-earnings multiple based on 2026 estimates stands at 110 — a level that leaves little margin for disappointment.

Palantir reports first-quarter results on May 4 after the US market close. Management has guided for full-year revenue growth of 61%. If the numbers confirm the pace of expansion in the US commercial business — which surged 137% in the prior quarter — the debate over valuation and political risk may temporarily fade into the background. But at these multiples, any misstep could prove costly.