Palantir Shares Plunge 7% to 52-Week Low After DGSI Switch
PLTR•Palantir shares fell as much as 7% intraday, hitting a 52-week low after France’s DGSI announced a gradual switch to domestic provider ChapsVision, though its renewed contract remains in effect through 2025. This slump persists despite Palantir reporting 104% U.S. revenue growth in Q1 2026.
1. Market Reaction and Share Performance
Palantir stock declined sharply on June 22, dropping about 7% intraday to reach a new 52-week low as investors assessed two key developments. The broader software sector is under pressure from rising interest rates, leading to intensified selling across enterprise technology names.
2. DGSI Contract Transition
France’s domestic intelligence agency, DGSI, has selected ChapsVision to replace Palantir’s data-analysis tools, signaling a strategic move toward locally developed software for sensitive national security operations. Palantir’s existing DGSI agreement, renewed in late 2025, will remain active during the gradual migration to avoid operational disruptions.
3. Q1 U.S. Revenue Growth
In Q1 2026, Palantir’s U.S. revenue surged 104% year-over-year, driven by accelerating demand from government and commercial clients. This robust growth underscores the company’s deepening foothold in domestic markets despite headwinds in Europe.
4. Sector Dynamics and Interest Rate Impact
Rising interest rates have weighed on valuations across the software industry, prompting investors to favor profitability metrics and cash flow over high-growth narratives. Palantir’s stock drop reflects this macroeconomic trend alongside company-specific contract shifts.
