Palantir Stock Drops Despite $300 Million USDA Win

Palantir's stock price has dropped recently despite securing a $300 million contract with the USDA, prompting investor concerns and criticism from the public.

PLTR fell 4-8% on April 23 despite announcing a $300 million Blanket Purchase Agreement with the USDA to support its "One Farmer, One File" digital transformation initiative — the company's third major federal contract in three months. The USDA awarded the deal directly to Palantir on a non-competitive basis, citing the company as the only vendor with required federal approvals, data models, and system integrations to meet project deadlines.

The stock decline reflects sector-wide enterprise software selling rather than contract-specific concerns. ServiceNow's Q1 earnings triggered margin compression fears across the space, dragging down PLTR alongside Snowflake, Cloudflare, and other high-multiple names . Adding to reputational overhang, the UK government is weighing its break clause on a £330 million NHS contract after reports of poor adoption (only ~50% of planned trusts live) and IP ownership disputes, amplifying calls from MPs and civil society groups to cut ties.

Despite the near-term pressure, PLTR's fundamentals remain exceptional: Q4 2025 revenue grew 70% YoY to $1.4 billion, and the company guides to $7.19 billion in full-year 2026 revenue — 61% growth. The stock now trades at 108x forward earnings, a rich multiple that 19 analysts with an average $194 target argue is justified by the company's expanding federal and commercial pipeline.