Palantir's Data-Isolation Gambit Meets a Split Wall Street

Palantir stock gained on an expanded PwC partnership and stricter AI data terms, as Q2 revenue jumped 93% to a record USD 1.935 billion.

Palantir Technologies is pressing its advantage on two fronts at once — hardening the terms under which outside AI models touch customer data, and widening the consulting channel that carries its software into the world's largest enterprises. The stock has been rewarded for both, though not uniformly.

Shares in the data and AI specialist climbed 3.3% to EUR 159.56 in the prior session, a move that reflects a broader reassessment of the company's role: less a vendor of experimental pilots, more a production-grade backbone for corporations and governments. A separate trading day saw the equity add 2.4% to EUR 158.26 on European venues after the company disclosed an expanded partnership with PwC.

A Hard Line on Data Residency

Reuters reported on September 14 that Palantir pushed Anthropic for irrevocable guarantees against data storage before the AI developer's models are deployed through Palantir software. The demand targets the rawest nerve in enterprise AI adoption — the fear that sensitive information leaks to external model operators, a concern that has reportedly also touched Nvidia's orbit.

Palantir is converting that anxiety into leverage. By insisting that customer data stays isolated, management positions the company as a control layer rather than a pass-through. Automating mission-critical workflows requires absolute confidentiality, and that requirement hands Palantir bargaining power that underpins its premium multiple.

From Pilot to Production Floor

The transition from testing to live deployment was the central theme of the customer forum AIPCon 11 on September 10. Palantir showcased use cases built on its Ontology architecture spanning supply chains, security systems, media, defense and drug discovery. Investors responded cautiously on the day itself, according to media accounts, since the event was strategic in nature and carried no fresh financial figures. The breadth of applications nonetheless signals access to wide industrial markets through the sovereign-AI theme.

Deepening the security-sector footprint, CEO Alex Karp said on September 1, per Reuters, that he would become the first major investor in a new defense technology venture founded by Mykhailo Fedorov.

PwC Deal Targets M&A Speed and ERP Overhaul

The enlarged alliance with PwC — the auditing and advisory group — concentrates on three areas: scaling AI applications inside large corporations, supporting corporate transactions, and modernizing ERP landscapes. At its core sits a jointly developed IT transaction platform built on Palantir's Foundry and its Artificial Intelligence Platform (AIP). Deployed at scale, the software is designed to let companies complete M&A processes up to 50% faster while cutting one-time transaction costs by as much as 45%.

The tie-up also aims to smooth enterprise software rollouts by pairing Palantir's automated data preparation tools with PwC's advisory bench. Target applications include global supply chains, risk management and the planning of large capital projects.

The Numbers Behind the Channel Push

Distribution partners are carrying more weight as Palantir works to sustain momentum in the commercial segment. Revenue in the second quarter of 2026 jumped 93% year over year to a record USD 1.935 billion. The home market did the heavy lifting: US commercial customer revenue surged 149%, and together with US government contracts accounted for 81% of total business.

Order intake reinforces the demand picture. Total remaining contract value rose 83% year over year to USD 13.1 billion at quarter's end. International business grew a far more modest 33.5%, which is why expanding through global consultancies such as PwC matters as a bridge into worldwide corporate structures.

Analysts Split on What the Growth Is Worth

UBS reaffirmed its buy rating on September 15 and lifted its price target to USD 250 from USD 220, explicitly citing the customer conference's momentum and strong demand for sovereign AI. Other market watchers also raised expectations after the event. Bank of America's Mariana Perez Mora is more bullish still, with a USD 255 target, arguing the global investment cycle for AI infrastructure is only beginning.

The cautious camp points to the rich valuation. Morgan Stanley rates the stock "Hold" with a USD 205 target, warning that some large customers may hesitate at current price levels. Roughly three weeks earlier, investor Michael Burry reiterated a short wager via put options, contending the company's fair value sits well below the market price.

Trading 12% below its 52-week high, the stock remains a battleground between growth optimists and valuation skeptics — even as the company's data-isolation stance and shift into production deployments harden the competitive moat that bulls are paying for.