New York, Jan 28, 2026, 11:03 EST — Regular session
- Palantir shares dropped roughly 2% in late-morning trading, moving against the broader market rally driven by AI-related names.
- Investors approaching earnings season are weighing a new UK defence contract alongside fresh scrutiny of Palantir’s U.S. immigration projects.
- Palantir is set to release its quarterly results after the close on Feb. 2.
Palantir Technologies (PLTR.O) shares dropped roughly 2% on Wednesday, continuing a decline that’s put the data-analytics company behind an AI-driven rally in the broader market. The stock slipped $3.31 to $162.39 in late-morning trading, after dipping as low as $161.95.
The move comes as investors juggle Federal Reserve signals with earnings reports from top tech giants, fueling sharp daily shifts in AI-related stocks. “You could definitely have a continuation on the rally in equities if the earnings season shows that AI expenditure is bringing in revenues,” said Jeff Leschen, managing director at Bramshill Investments. Reuters
Palantir is back in the spotlight with government contracts. The UK Ministry of Defence has directly awarded Palantir’s British division a £240.6 million, three-year enterprise agreement — basically a licensing and support contract — set to begin April 1, according to The Register, which cited a contract notice. The deal was reportedly signed on Dec. 30. An MoD spokesperson told the publication, “We conduct comprehensive due diligence on any business appointments that may lead to concern.” The Register
In the U.S., Palantir is facing renewed internal resistance over its relationship with U.S. Immigration and Customs Enforcement, according to Wired. Following the weekend shooting of a Minneapolis nurse by federal agents, employees voiced concerns on a company-wide Slack channel. Palantir’s internal wiki flagged potential “reputational risk” linked to immigration enforcement contracts. Executive Akash Jain acknowledged the issue, stating: “Yes, we do not take the position of policing the use of our platform for every workflow.” WIRED
Palantir’s pitch centers on software that extracts patterns from messy data for governments and businesses. It has pushed its AI angle aggressively as budgets tilt toward automation. That strategy can attract buyers, but it also makes the stock jittery when political tensions flare.
Palantir is gearing up to release its fourth-quarter and full-year 2025 results on Monday, Feb. 2, right after the U.S. markets shut down. The company will hold a webcast at 5 p.m. ET to discuss the numbers.
But there’s a catch investors can’t ignore: Palantir’s heavy public-sector ties, which drive its biggest contracts, also leave it vulnerable to issues beyond its control. Procurement reviews, immigration debates, and potential contract delays can sour sentiment fast, even if revenue remains unaffected for now.
Traders will focus on the Fed decision and megacap tech earnings for the remainder of Wednesday. Then all eyes turn to Feb. 2, when Palantir’s outlook is expected to shape the next move in PLTR.
