NEW YORK, Jan 21, 2026, 16:35 EST — After-hours
- After a choppy session, Palantir shares dropped 1.9% in after-hours trading, settling at $165.33
- Accenture revealed that UK-based Sovereign AI has chosen Palantir to lead an AI data-center expansion spanning Europe, the Middle East, and Africa
- As Palantir’s partnership with HD Hyundai broadens, investors are turning their attention to the earnings report due on Feb. 2
Shares of Palantir Technologies Inc dropped 1.9% in after-hours trading Wednesday, retreating following a choppy day marked by new deal announcements from Davos. The stock last traded at $165.33, after swinging between $161.11 and $170.17 during the session.
These developments matter as Palantir seeks to prove it can scale its data software beyond custom government contracts into broad, repeatable commercial deployments. Securing a few wins in heavy industry and infrastructure bolsters that argument—but it also sets higher expectations for earnings.
The broader market improved, with the S&P 500 climbing 1.16% and the Nasdaq up 1.18% after President Donald Trump announced a framework deal on Greenland, meaning the tariffs scheduled for Feb. 1 won’t take effect. “What the economic impact is whether we all start imposing tariffs on each other,” said Jason Pride, chief of investment strategy and research at Glenmede. (Reuters)
At Davos, UK-based Sovereign AI announced it has chosen Accenture and Palantir to help develop and expand next-gen AI data centers across Europe, the Middle East, and Africa. This move is part of a “sovereign AI” initiative focused on keeping data and computing local for security and regulatory control. Palantir’s “Chain Reaction” software will manage the buildout, supported by Dell AI Factory and Nvidia hardware, the companies said. “Palantir Chain Reaction software is a key advantage in the buildout of AI infrastructure,” said Kevin Kawasaki, Palantir’s global head of business development. (Accenture Newsroom)
Just a day earlier, Palantir secured a major enterprise-wide agreement to provide software to South Korea’s HD Hyundai, worth hundreds of millions over several years, according to a source familiar with the deal who spoke to Reuters. CEO Alex Karp described himself as “very bullish” on the Korean market and noted that U.S. demand currently outstrips their capacity. HD Hyundai reported it’s now building ships roughly 30% faster thanks to Palantir’s software. (Reuters)
Palantir emerged in Ukraine’s initiative to share combat data with allies, aiming to train AI models for military purposes. Kyiv believes this could enhance its defenses against Russian drones. Defence Minister Mykhailo Fedorov announced a new project with Palantir named “Dataroom,” designed to intercept Russian drones, dubbing it “the mathematics of war.” (Reuters)
Timing trips up traders. Infrastructure projects often seem massive on paper, yet revenue might not come until much later. Meanwhile, deployments can tie up staff long before reaching scale.
Software stocks have taken a hit recently. Europe’s SAP slid to a 17-month low on Wednesday amid worries that AI might simplify replicating some software. The S&P 500 software index has dropped 7.2% so far this year. “Software sentiment has rarely been lower,” Jefferies analyst Brent Thill noted this week. (Reuters)
The downside is straightforward: deals announced at conferences often lose momentum as budgets shrink, and data-center expansions depend on power, permits, and spending choices that can be delayed. Palantir’s public-sector contracts may also face increased scrutiny, making international progress tricky despite solid demand.
Palantir is set to release its fourth-quarter results on Feb. 2, right after the U.S. market closes, followed by a webcast at 5 p.m. ET. Investors are zeroed in on the 2026 forecast, particularly U.S. commercial growth and insights into demand for its AI and data-center software. (Businesswire)
