New York, Feb 17, 2026, 10:24 (EST) — Regular session
- Palantir shares dropped roughly 1.3% early, moving lower alongside a weaker mood in AI-focused software names.
- Annual filing put 2025 revenue at roughly $4.48 billion, up 56%. Government contracts remained the majority.
- Investors are tracking contract flow and Wednesday’s Fed minutes, searching for the next move in rates and tech valuations.
Palantir Technologies Inc (PLTR) slipped roughly 1.3% to $129.64 during Tuesday morning trading, paring earlier advances. Investors weighed the latest annual filing and new government-contract news against a backdrop of wariness in the tech sector.
Timing is key here. Plenty of funds still treat Palantir as an artificial intelligence play, yet lately, the stock trades more in step with moves in rates, shifts in risk appetite, and questions about how long public-sector spending can hold up.
Palantir’s annual 10-K, filed Tuesday, shows 2025 revenue jumped 56% to $4.475 billion. Government clients contributed 54%, commercial 46%. The company also pointed to lengthy, unpredictable sales cycles and its dependence on a handful of major customers. Still, the top three together brought in 16% of 2025 revenue, while no single client reached the 10% mark. (SEC)
The Australian Defence Department has inked a one-year, A$7.6 million contract for its Cyber Warfare Division—an “ICT System Platform,” according to Crikey. The arrangement went through a limited tender, skipping the usual broader market approach. With this latest deal, Defence’s total outlay to Palantir now tops A$26 million, Crikey noted. (Crikey)
Company news collided with a volatile market backdrop. Reuters cited “AI jitters” spreading from semiconductors to software, and Ostrum Asset Management’s Axel Botte observed, “The markets are taking each sector one-by-one … now it’s software.” (Reuters)
Palantir’s last major spark came earlier this month. The company projected first-quarter and full-year 2026 revenue ahead of LSEG estimates, with CEO Alex Karp defending its surveillance tech during the earnings call and again in his letter to shareholders. Still, valuation concerns didn’t go anywhere. “Valuation question marks won’t disappear,” said eToro analyst Zavier Wong. (Reuters)
Traders are left weighing whether Tuesday’s filing and all the contract talk actually shift the outlook for the coming quarters, or if it’s just more fuel for the same old argument: stick with reliable government deals, or chase commercial expansion—still a point of contention over cost and payoff.
There’s a more basic risk, too. A$7.6 million barely registers against multi-billion-dollar annual revenue, and government contracts are unpredictable—delays, politics, the usual. Tech sentiment sours? Even upbeat contract news might not keep the stock afloat.
Coming Wednesday, the Federal Reserve’s meeting minutes land—investors scanning for any signals on rates, which matter a lot for high-multiple software names. (Fxstreet)
