Booz Allen Hamilton Holding

Palantir has pressed Anthropic for an irrevocable zero-data-retention guarantee before allowing Anthropic models to be made accessible through Palantir's software, according to Reuters, citing The Information. The demand is aimed at contractual certainty that sensitive prompts, usage data and outputs cannot later be retained, repurposed or exposed through policy changes. The dispute intensified after Anthropic changed the policy for its Fable model in June, allowing companies to retain usage logs for 30 days to defend against attacks, a move that drew customer pushback. Nvidia has reportedly limited Anthropic models to less-sensitive tasks while using its own Nemotron models for internal work, and Booz Allen has barred Anthropic's commercial model from specific proprietary cybersecurity activities. The development strengthens part of Palantir's growth thesis, which centers on becoming the layer that determines how models interact with sensitive corporate data, though the stock trades at a market cap of nearly $400 billion and around 143-times trailing earnings after surging over 50% in August. Palantir's Q2 sales surged 93% to $1.94 billion, U.S. commercial revenues were up 149%, and adjusted operating margins reached 62%, with management expecting nearly $8.15 billion in 2026 sales.

Major US technology companies including Palantir Technologies, Nvidia, and Booz Allen Hamilton may restrict or halt their use of the most advanced AI models from AI developers Anthropic and OpenAI unless the two companies guarantee they will not misuse their intellectual property, the US online media outlet The Information reported on the 14th. According to sources familiar with the matter, Microsoft is turning these concerns to its advantage, aiming to expand its customer base by pitching isolated cloud environments and its own AI services. Palantir has demanded that Anthropic guarantee it will not retain irrevocable data before allowing Anthropic's AI models to access its software. Nvidia has limited its use of Anthropic's AI models to less sensitive operations and adopted its own AI system, Nemotron, for internal work, while Booz Allen has barred employees from using Anthropic's commercial AI models for cybersecurity work. Anthropic CEO Dario Amodei called on AI developers on the 12th to slow the pace of developing cutting-edge AI models, and OpenAI CEO Sam Altman and Elon Musk, who leads xAI, immediately expressed their support.

Palantir Technologies, Nvidia, and Booz Allen Hamilton are restricting or threatening to drop advanced AI models from Anthropic and OpenAI unless the labs provide stronger data protections, according to Reuters. Palantir has pressed Anthropic to guarantee zero data retention before making its models available through Palantir's software, while Nvidia limits Anthropic's models to less sensitive internal tasks and prefers its own Nemotron models for proprietary work, and Booz Allen has forbidden staff from running Anthropic's commercial model on cybersecurity projects touching proprietary data. The pushback intensified after Anthropic introduced a 30-day data retention policy in June tied to the rollout of its Fable 5 model, saying it needed usage logs to detect sophisticated attacks that unfold across multiple sessions, though the company said it would not use the retained data to train its models. Anthropic responded by announcing Enterprise Frontier Safeguards, which lets enterprise customers store activity data in their own cloud infrastructure, including Amazon S3, Azure Blob Storage, or Google Cloud Storage, under their own encryption keys, with automated safety monitoring but no human review by Anthropic employees; the system is rolling out in phases, with broader availability targeted for later this fall. Last week, Palantir and Nvidia unveiled a platform pairing Palantir's software with Nvidia's open Nemotron models to let organizations run AI on their own data without exposing it to outside model providers, and Nvidia shares dropped roughly 3% on Monday as AI-related stocks broadly retreated.

Innodata Inc. is expanding its AI data-engineering and evaluation capabilities into the U.S. federal market, potentially opening a new growth avenue beyond frontier AI labs and large technology companies. Management sees growing demand from government agencies to evaluate, benchmark, and red-team increasingly capable AI models, and the company is already in discussions with government participants and agencies about potential partnerships. Innodata highlighted its representation in the TradeWinds marketplace as an advantage for federal procurement, and it released two public benchmarks in the second quarter designed to identify failure modes that conventional leaderboards miss. The company is also demonstrating its AI model for drone and small-object detection, which exceeded prior state-of-the-art benchmarks by 6.45%, to the government. Innodata faces competition from Palantir Technologies and Booz Allen Hamilton, which have strong federal relationships and overlapping AI assurance and red-teaming services, but management believes its frontier-lab-developed benchmarking and evaluation expertise provides differentiation. Innodata has not disclosed federal contract values or a revenue target, making near-term contribution difficult to quantify, though the runway appears meaningful. Shares of Innodata have gained 37.5% in the past six months, and the stock trades at a forward 12-month price-to-earnings ratio of 41.45, above the industry average, while the Zacks Consensus Estimate for 2026 sales and earnings implies year-over-year growth of 42.1% and 28.1%, respectively.

Jacobs Solutions is set to announce its second-quarter earnings this Tuesday afternoon. The market expects revenue to grow 7.8% year on year, matching the 7% increase recorded in the same quarter last year. Analysts have largely maintained their estimates over the past 30 days, though the company has missed Wall Street revenue expectations multiple times in the last two years. Among peers, Booz Allen Hamilton reported a 4.2% revenue decline, missing estimates by 0.5%, while Ryan Specialty posted a 7.2% revenue increase, beating estimates by 5.3%. Jacobs Solutions shares have risen 5.3% over the past month, and the average analyst price target stands at $156.53 compared to the current share price of $136.36.

Government consulting firm Booz Allen Hamilton will announce earnings results this Friday morning. Last quarter, the company reported revenues of $2.78 billion, down 6.4% year on year, missing analysts' revenue expectations. For the upcoming report, the market expects revenue to decline 3.7% year on year, a deceleration from flat revenue in the same quarter last year. Analysts have generally reconfirmed their estimates over the last 30 days. Booz Allen Hamilton shares are up 3.7% over the last month, heading into earnings with an average analyst price target of $84 compared to the current share price of $66.22.

Government and technical consulting stocks reported mixed first-quarter results, with aggregate revenues in line with analyst estimates but share prices collectively declining 3.8% on average since reporting. ICF International posted revenues of $437.5 million, down 10.3% year on year and missing estimates by 2.5%, while UL Solutions led the group with revenues of $758 million, up 7.5% and beating expectations by 1.2%. Amentum reported flat revenues of $3.48 billion, in line with estimates, but missed EPS forecasts significantly. Jacobs Solutions grew revenues 8.8% to $2.33 billion, topping estimates by 2%, and Booz Allen Hamilton saw revenues fall 6.4% to $2.78 billion, missing estimates by 2.8%.