Shifting Political Winds Could Endanger Palantir’s (PLTR) Revenue and Share Price

As of February 2026 Palantir (PLTR) derives over 60% of its total revenue from US Government contracts, including a lucrative contract to run ICE’s self deportation app. With Democrats pushing back in the senate against ice funding, and the high probability of a midterm congressional flip (historically the sitting president’s party performs very poorly in the midterm elections) Palantir’s profit margins and revenue may soon come under intense pressure. 2027 is extremely likely to be a year of extended budget fights and Congressional revenge tours. Combined with PLTR’s rich valuation at 200x - 300x price to annual earnings, there is the very real possibility that PLTR’s government funding may be cut in the scramble for the bread basket. Disclosure: I am a retail investor and options trader. I am not a financial advisor of any sort. Do not take this as financial advice. Position Disclosure: I have recently flipped my PLTR exposure from Long to Short. I have current open Put Options against PLTR and may make several other trades at any time with no warning.