Palantir Achieves Important Contract Win with Far-Reaching Implications

Palantir’s (PLTR) eye-catching inventory efficiency (up 146% year-to-date) usually makes us overlook that a lot of its actual progress occurs removed from Mr. Market’s highlight.

Though the inventory market punditry continues to debate valuations and AI outlooks, Palantir stays laser-focused on what has outlined its enterprise over time: convincing governments to belief its strong software program with essentially the most delicate issues.

That’s why the contract renewal with France’s home intelligence company (DGSI) issues much more than the headline suggests.

Over the previous few years, Palantir’s native staff has labored diligently alongside the DGSI throughout high-stakes moments.

These embody marquee sporting occasions, such because the 2024 Paris Olympic Video games, and supporting counter-terrorism operations.

The help Palantir gives turns into mission-critical for an company that has duties resembling monitoring terror threats, international espionage, and home safety dangers on its plate 24/7.

Europe hasn’t been the best nut to crack for Palantir, and France isn’t a simple buyer. Additionally, it’s a area the place Palantir CEO Alex Karp has usually been panned for being sluggish on AI and nationwide safety know-how.

Strict information and privateness norms have usually taken middle stage within the relationship. Heck, France was reportedly on the lookout for methods to interchange Palantir.

It failed.

As a substitute, France selected to double down on its cope with Palantir, which has been in place since 2016.

For Palantir and its followers, France’s nod of approval underscores the significance of reliability over ideology, even in markets that after resisted it most.

Palantir’s renewed contract with the DGSI is way greater than its undisclosed greenback worth.

The largest takeaway for the AI bellwether is that it strengthens its authorities enterprise outdoors the U.S.

Palantir has relied closely on American protection and intelligence purchasers over time.

In 2024, about 66% of the corporate’s working income got here from the U.S., coming as much as almost $1.9 billion. Compared, simply 10.6% got here from the UK and 23% from the remainder of the world.

Europe has been a tricky market, to say the least, for Palantir, making this new deal unusually significant.

That’s maybe doubly true, given France’s skepticism.

The nation has spent years on the lookout for different protection AI specialists, on the again of issues round information sovereignty and privateness.

In the long run, France renewed its decade-long Palantir contract anyway, in essence admitting to the platform’s stickiness.

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Karp has been blunt about Europe’s hesitation, Entrepreneur reported.

He has sounded the alarm over the area being “left behind” in AI development and the should be versatile or “danger wreck.”

In his scathing takedown, he went additional, arguing European establishments have been “whining and crying” whereas the U.S. prices forward within the AI arms race.

Authorities prospects basically kind the spine of Palantir’s development story.

Per the most recent disclosures, public-sector purchasers generate roughly 50% of whole gross sales, a stability Karp expects to stay at 50/50 between authorities and industrial enterprise for the foreseeable future.

Extra Palantir 

In Q3, U.S. authorities gross sales skyrocketed over 50% yr over yr, reaching almost $486 million, whereas worldwide authorities income additionally jumped 66%, spearheaded by the UK and allied nations.

That demand successfully pushed whole contract worth bookings to an eye-popping file of $2.8 billion, up 151% from the prior yr.

The momentum might be seen all through its financials, the place it generated almost $476 million in quarterly internet revenue (a 40% margin), alongside over $2 billion in trailing free money stream and $6.4 billion in its money until.

Maybe one of the simplest ways to gauge Palantir’s large affect is by the size and scope of its multi-year authorities contracts:

• U.S. Military (as much as $10 billion): A ten-year enterprise settlement consolidating dozens of applications, underscoring the Military’s intent to spend “billions” on Palantir’s AI platforms.

• Pentagon – Mission Maven ($795 million): A significant Protection Division program by which Palantir gives a spread of protection AI companies.

• U.S. Navy – ShipOS ($448 million): A significant logistics modernization effort with Palantir’s strong AI software program to overtake the Navy’s shipbuilding provide chain.

• UK Ministry of Defence ($950 million): A five-year deal increasing Palantir’s function in British protection.

• NHS England ($420 million): A controversial but high-profile contract to develop a nationwide well being information platform.

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This story was initially printed by TheStreet on Dec 15, 2025, the place it first appeared within the Expertise part. Add TheStreet as a Most well-liked Supply by clicking right here.