Palantir secures $795M U.S. Army contract modification

Palantir secures $795M U.S. Army contract modification

Palantir Technologies Inc. (PLTR) has secured a modification to an existing contract with the U.S. Army, valued at $795 million. The U.S. Defense Department announced the modification on Wednesday, which involves the company's Maven Smart System software licenses at an Army Contracting Command in Aberdeen Proving Ground, Maryland. The original agreement, announced in May 2024, awarded a $480 million contract [1][2].

The new contract modification brings the total value of the contract to $1.275 billion, with a target completion date of May 28, 2029. The Maven Smart System is a software platform that uses artificial intelligence to analyze and visualize large amounts of data, making it a valuable tool for military operations.

Palantir's stock price has shown resilience despite recent market fluctuations. On Monday, May 19, 2025, the stock lost 3.36% in the wake of the U.S. credit rating being downgraded by Moody’s. However, the stock remains up 4.36% over the past five trading sessions and has seen a year-to-date gain of 66.58% since going public in October 2020 [3].

Palantir's revenue has grown significantly since its IPO in 2020, with revenues reaching $2.87 billion in 2024. The company's strong performance in government contracts, particularly with the U.S. government, has been a key driver of this growth. In 2023, government-sourced revenue amounted to $1.222 billion compared to $1.002 billion for commercially-sourced revenue [3].

Palantir's strategic partnerships with space companies, such as Voyager Space and Starlab Space, also contribute to its growth prospects. These partnerships aim to leverage Palantir's AI capabilities to drive innovation in space technology, enhancing communications, military research, and intelligence [3].

The company's stock forecast for 2025 projects a price target of $120, with a consensus "Hold" rating from analysts. However, some analysts remain optimistic about Palantir's long-term growth potential, with projections for the stock price to reach $192 by 2030, an increase of 62.65% from the current stock price [3].

References:
[1] https://www.marketwatch.com/story/palantir-gets-795m-u-s-army-contract-modification-1a5cce74
[2] https://www.marketscreener.com/quote/stock/PALANTIR-TECHNOLOGIES-INC-113108869/news/Palantir-Gets-795-Million-U-S-Army-Contract-Modification-50030504/
[3] https://247wallst.com/forecasts/2025/05/19/palantir-technologies-pltr-price-prediction-and-forecast-2025-2030/