Palantir Technologies (PLTR) won a major 10-year Enterprise Agreement with the U.S. Army, valued at up to $10 billion. The Army consolidated 75 existing contracts, including 15 prime and 60 related, into a single streamlined agreement. This move aims to enhance military readiness, shorten procurement time, reduce reseller fees, and boost operational efficiency. The announcement came just days before Palantir’s release of its second-quarter fiscal 2025 results on August 4.
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By eliminating reseller and contract pass-through fees, the Army aims to accelerate delivery of Palantir’s commercially available data integration, analytics, and AI software solutions to warfighters. A unified contract also offers volume-based discounts and enables other Department of Defense (DoD) agencies to purchase Palantir’s commercial products during the contract period.
Palantir Wins Largest Ever Contract to Date
The $10 billion contract represents Palantir’s largest contract to date, underscoring its role as a vital software supplier to the Pentagon. Although the contract is valued at $10 billion, the Army is not obligated to buy the entire amount. Palantir has a longstanding strategic partnership with the Army and DoD, with its software powering major data integration and AI-driven decision-making across multiple units.
The contract reflects the Army’s efforts to consolidate and modernize its software procurement process, positioning Palantir as a vital supplier of defense technology for the coming decade. It also highlights Palantir’s potential for recurring revenue from ongoing work with the Army and DoD.
Army CIO Leonel Garciga described the deal as a significant step toward modernizing Army technology while practicing fiscal responsibility. The goal is to simplify software procurement, maintain healthy competition to avoid vendor lock-in, and rapidly provide advanced data and AI tools for critical military missions, all while ensuring cost efficiency.
Is PLTR Stock a Buy Before Earnings?
Wall Street remains cautious about Palantir’s long-term outlook. On TipRanks, PLTR stock has a Hold consensus rating based on four Buys, 10 Holds, and three Sell ratings. The average Palantir price target of $111.14 implies 29.8% downside potential from current levels. Year-to-date, PLTR stock has already surged over 109%.
