Palantir Secures Army Contract but Faces Criticism from Michael Burry
On September 4, 2026, Palantir Technologies (PLTR) announced a new contract with the U.S. Army for eight TITAN ground station systems two days prior to Michael Burry's public bear case on the company. Despite Burry’s concerns about its financials and valuation, shares of PLTR rose nearly 7% following news that PwC expanded their partnership to build an AI-native deals platform using Palantir’s software. Burry criticized Palantir for being overvalued at $100 billion or more, arguing it operates more like a consulting firm than a high-growth SaaS company. He highlighted issues such as low deferred revenue compared to peers and rising accounts receivable tied to one customer. Additionally, he pointed out the lack of federal tax payments despite reported GAAP profits in 2025. The Army contract and PwC partnership provided immediate market validation for Palantir’s enterprise AI capabilities, helping offset Burry's bearish sentiment. The stock remained resilient as positive developments overshadowed his concerns.
Topics: AI consulting balance sheet analysis contract wins Michael Burry Palantir