On January 1, the Department of Defense awarded a multi-year, multibillion-dollar AI systems contract to Alphabet’s Google Cloud unit, marking its largest single Pentagon award since 2018. The deal covers cloud-based data integration, machine learning platforms and real-time analytics—areas where Palantir has historically held a leading position. Palantir’s revenue from U.S. government customers grew 58% year-over-year in its latest fiscal quarter, but Alphabet’s entry into the defense AI space could pressure Palantir’s government pipeline, which accounted for 46% of its total $1.18 billion in quarterly revenue.

In its most recent 13F filing, apricus wealth LLC disclosed a 50% reduction in its Palantir stake, selling 5,000 shares and ending the quarter with 5,000 shares valued at $912,000. Tradewinds Capital Management increased its stake by 36%, adding 84 shares for a total of 319 shares, while Simon Quick Advisors boosted its holding by 147%, acquiring 2,389 shares to reach 4,016 shares. Collectively, institutional investors now control 45.7% of Palantir’s outstanding stock, reflecting ongoing portfolio rotations within the software sector.

Palantir reported third-quarter revenues of $1.18 billion, a 62.8% increase year-over-year, and adjusted EPS of $0.21, beating consensus estimates by $0.04. Despite the beat, the stock trades at 122 times sales and 435 times trailing earnings, raising valuation concerns. Five analysts raised their price targets following the earnings release, with Bank of America lifting its target from $215 to $255 and Robert W. Baird increasing its target from $170 to $200. The consensus rating remains “Hold,” with a median target price of $172.28.

Between November 20 and 21, Palantir insiders sold over 58 million dollars worth of shares. CEO Alex Karp disposed of 359,325 shares at an average price of $163.99, reducing his holding by 5.3% to 6.43 million shares. Shyam Sankar sold 19,004 shares for roughly $2.97 million, trimming his stake by 2.9% to 642,786 shares. These transactions represent the largest insider divestitures since Palantir’s public debut in 2020 and underscore executive confidence tempered by the stock’s elevated multiple.