Palantir Gains a Powerful Enterprise Ally in SAP as Germany Bars It From a Key Defense Cloud Contract
Published on 05/15/2026 at 06:23 | Redaktion boerse-global.de
Palantir is navigating a sharply divided landscape. On one side, SAP’s decision to embed the company’s technology into its “Autonomous Enterprise” initiative on May 14 gives the commercial growth story a powerful new endorsement. On the other, Germany has excluded the data analytics firm from a high-profile military cloud procurement, testing local alternatives from Almato, Orcrist and ChapsVision instead.
The tension between these two forces helps explain why the stock closed at €114.58 on Thursday, down roughly 20% since the start of the year and about 36% below its autumn peak. Retail investors, once a bedrock of demand, have turned sellers.
Data from JPMorgan shows that in the week through May 13, individual investors sold a net $82 million worth of Palantir shares. The rotation is part of a broader shift out of software-heavy AI names and into semiconductor and memory-chip plays — a move that hits Palantir especially hard given the lofty valuation already baked into its price.
The SAP partnership, announced at the Sapphire 2026 conference, brings Palantir into the SAP Business AI Platform alongside Accenture, with a focus on cloud ERP migrations powered by artificial intelligence. That aligns neatly with the company’s strongest growth engine: U.S. commercial revenue surged 133% to $595 million in the first quarter, lifting total revenue to $1.63 billion — an 85% jump year over year. The full-year revenue target now stands at roughly $7.6 billion.
Should investors sell immediately? Or is it worth buying Palantir?
Yet the German defense snag cuts directly into Palantir’s long-standing narrative as a critical partner for sovereign clients. Berlin’s demand for a private cloud free of structural foreign access has pushed the Bundeswehr to test other solutions, a blow to a company whose government business grew 76% in the first quarter. CEO Alex Karp did not mince words, deriding the debate as “witchcraft,” a remark that underscores how much the European government segment matters for Palantir’s future.
The high-multiple environment leaves little room for such setbacks. Palantir’s Rule of 40 score sits at a sky-high 145%, reflecting massive growth but also an assumption that margins will eventually catch up. The trailing price-to-earnings ratio is around 150, and the forward multiple is 97. Those numbers give skeptics like Michael Burry and Andrew Left plenty of ammunition.
Adding to the pressure, insider sales continue to weigh on sentiment. Over the past 90 days, executives and directors have sold 1,029,479 shares worth about $137.7 million. Co-founder Peter Thiel alone unloaded roughly two million shares in March.
Palantir at a turning point? This analysis reveals what investors need to know now.
Analysts, however, remain broadly constructive. Among 31 firms covering the stock, the consensus is “Moderate Buy” with an average price target of $195.16 — implying considerable upside from current levels. That target reflects the gap between near-term anxiety and longer-term conviction around Palantir’s commercial momentum.
A brief rally on Wednesday, fueled by Cisco’s strong earnings and raised AI spending outlook, sent Palantir up as much as 2.9% intraday. But the recovery faded, and the stock continues to trade below the €124.38 level that technicians consider a key threshold for renewed confidence. Until that resistance gives way — or until the European government narrative improves — Palantir’s bull and bear cases will remain locked in a tight, noisy contest.
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