Palantir Technologies is poised to win a U.S. Army contract that could eventually deliver annual recurring revenue approaching $100 million, said a William Blair analyst in a report. Palantir stock rose on Wednesday amid the news.
William Blair analyst Louis DiPalma said Palantir is partnering with L3Harris and Anduril for the Next-Generation Command and Control (NGC2) program.
"We expect that the U.S. Army will soon announce that it awarded Palantir a contract for NGC2 program," said DiPalma in a report. "Given the size and strategic significance of this program that plans and executes battlefield missions, we believe that Palantir's annual recurring revenue from NGC2 will approach $100 million over time as the system scales. This would make NCG2 one of Palantir's largest contracts, and in the similar ZIP code as Palantir's other Army projects for Maven and Vantage."
On the stock market today, Palantir stock rose more than 1% to 86.26 in midday trading. In 2025, Palantir stock has climbed more than 14%.
However, shares are down over 30% from an all-time high of 125.41 on Feb. 19.
One concern for Palantir stock has been possible Department of Defense budget cuts and exposure to U.S. Army contracts.
Palantir has provided data analytics tools to government customers for intelligence gathering, counterterrorism and military purposes. Now Palantir aims to use generative AI to spur growth in the U.S. commercial market, such as health care and financial services.
Palantir is among artificial intelligence stocks to watch. Many of last year's hot AI stocks have struggled, including chipmaker Nvidia, Arista Networks and Salesforce.
In 2024, Palantir stock popped 340%, with much of the gain coming after Donald Trump's Presidential election win.
Palantir Stock: Technical Ratings
Meanwhile, Palantir stock holds a Composite Rating of 98 out of a best-possible 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
PLTR stock holds an Accumulation/Distribution Rating of C. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
View More Palantir Stock News And Analysis
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