Palantir Technologies Inc (PLTR) shares are celebrating a new 52-week high on Thursday morning, fueled by a significant contract win. The company has been awarded a $99.8 million deal by the United States Army for its Maven Smart System AI tool.
This latest contract, detailed on the U.S. Department of Defense (DOD) website, covers user licenses for the Maven AI tool, along with ancillary software support and hardware. The DOD states that the contract has an estimated completion date of September 24, 2029. Funding and specific work locations will be determined for each individual order.
This new award marks a significant addition to Palantir’s existing portfolio of government contracts. In May, the company received a $480 million contract from the US Army for the Maven Smart System prototype, with an estimated completion date of May 28, 2029.
Palantir’s recent financial performance showcases its growing presence in the government sector. During the second quarter, U.S. government revenue surged 24% year-over-year, reaching $278 million. Total government revenue, including international government contracts, climbed 23% year-over-year to $371 million.
While Palantir’s next earnings report is expected around the end of October, analysts are currently projecting earnings of 9 cents per share and revenue of $701.13 million. The company’s stock is also benefiting from the broader market’s positive reaction to the Federal Reserve’s 0.5% interest rate cut on Wednesday. This move brought the target federal funds rate to a new range between 4.75% and 5%, down from a 23-year high.
In conclusion, Palantir’s strong contract win with the US Army, coupled with positive market sentiment and its impressive government revenue growth, is driving the company’s stock to new highs. The company is well-positioned for continued success in the government technology sector, with the potential to continue expanding its reach in the years to come.
