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Palantir Wins Defense Department AI Contract Worth Up to $633 Million

By Josee Rose

Palantir Technologies was awarded a contract to scale data analytics and AI capabilities for the Defense Department.

The deal has an initial value of $153 million to support certain Combatant Commands and the Joint Staff, and additional awards can be made for up to $480 million over five years.

The data-analytics firm also said on Thursday it has received a $33 million deal to securely onboard third-party vendor and government capabilities into the government-owned, Palantir-operated data environment.

Palantir has long worked with the U.S. government and some analysts and shareholders have worried about slowing momentum as revenue growth from these contracts has shown signs of cooling.

Shares were up 2.5% in after-hours trading to $22.25, and ended the market session with a gain of 3.8% to close at $21.73.

Earlier this month Palantir said first-quarter profit rose to $106 million in the three months through March, beating last quarter's then-record $93 million. The company expects to turn a profit in each quarter of this year. Sales rose 21% from a year earlier to $634 million, beating expectations. Growth has cooled since its 2020 IPO, when revenue was rising more than 50% annually. Government revenue totaled $335 million, up 16% from a year earlier and above analysts' expectations.

Write to Josee Rose at josee.rose@wsj.com

 

(END) Dow Jones Newswires

May 30, 2024 17:21 ET (21:21 GMT)

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