Palantir's stock drops 8% on defense tech security flaws allegations

Business Oct 03, 2025

Palantir's stock dropped over 8% on Friday after reports claimed there were security flaws in its battlefield communications tech.
Anduril, another defense tech company, was also named in the allegations.
Both companies pushed back, saying the claims were outdated and didn't reflect how things stand now.

US Army memo flagged risks in Anduril's NGC2 system

A recent US Army memo flagged risks like insider threats and data leaks in Anduril's NGC2 system, which involves partners like Palantir and Microsoft.
Palantir responded that any issues mentioned have already been fixed and their platform is secure.
This marks Palantir's sharpest single-day drop since August, coming as other tech companies also slipped Friday following threats from the White House to lay off government workers.