France's DGSI intelligence agency is swapping out Palantir for a French-developed rival, according to Reuters — the clearest example yet of European sovereign-data concerns translating into actual contract terminations rather than just political rhetoric. PLTR reported $4.5B in FY2025 revenue (+56% YoY) with an 82% gross margin, so any single government contract loss is numerically small, but the signal value is disproportionate given how central government credibility is to PLTR's brand and pipeline.

The risk is contagion: if France's intelligence service sets a precedent, other EU agencies — particularly post-GDPR and amid ongoing US-Europe tech-sovereignty tensions — may accelerate similar reviews. Watch for any follow-on Reuters or Le Monde reporting on other EU agency contracts, and monitor PLTR's next earnings call for any commentary on European government revenue trajectory.