Palantir Stock Jumps on a Military Deal. Can the Stock Continue Its Momentum?

Geoffrey Seiler, The Motley Fool

Wed, Apr 16, 2025, 4:00 AM 5 min read

Winning subject deals isn't caller for Palantir Technologies (NASDAQ: PLTR). The U.S. authorities is its largest customer, with the Department of Defense (DOD) 1 of its biggest benefactors.

However, Palantir's latest subject woody isn't with the U.S. government; it's with NATO (North Atlantic Treaty Organization). That's a important triumph and could assistance bolster the company's maturation moving forward.

Last year, Palantir saw beardown gross maturation coming from some U.S. commercialized customers and the U.S. government, which is its biggest customer. Where it wasn't arsenic beardown was successful planetary markets. However, the NATO woody could beryllium astir to alteration things.

The woody with NATO is for a mentation of Palantir's Maven Smart System, which uses artificial quality (AI) to assistance amended subject intelligence, targeting, and strategical decision-making. The U.S. authorities deploys its ain mentation of Maven nether a five-year declaration valued astatine astir $100 million. The level has besides been utilized by Ukraine successful its warfare with Russia. Maven tin stitchery accusation from assorted sources, specified arsenic outer imagery and drone footage, to way unit movements and connection tactical recommendations.

The declaration with NATO took conscionable six months to implicit and is expected to beryllium operational wrong the adjacent 30 days. It is 1 of NATO's quickest procurements. Terms of the woody were not disclosed, but based connected the size of the U.S. deal, it is apt beauteous large.

With threats from President Donald Trump that the U.S. could permission NATO if different countries bash not summation defence spending, the confederation and its European members person been rushing to beef up their subject spending. This whitethorn let Palantir to unafraid much contracts with NATO and European countries uncertain astir U.S. enactment successful conflicts.

If this happens, planetary authorities maturation could go the 3rd limb of Palantir's maturation drivers. Its biggest maturation close present is coming from U.S. commercialized customers, which are utilizing its level to place problems wherever they tin use AI to supply actionable solutions. It's looking to beryllium an AI operating strategy for its customers, with a absorption connected making AI actionable. Many of its commercialized customers are investigating concepts, offering important maturation imaginable arsenic they determination to real-world solutions.

Meanwhile, the institution saw renewed maturation with the U.S. government, arsenic its largest lawsuit began to clasp the powerfulness of AI solutions. Revenue from the U.S. authorities grew 30% successful 2024 and accelerated to turn by 45% successful Q4. The institution won respective large contracts with the Pentagon successful the process.