TLDR
- William Blair reiterated an Outperform rating on Palantir (PLTR), pointing to growth in its Maven Smart System (MSS) Pentagon contract.
- The Department of War program is trending toward a billion-dollar annual revenue run-rate across multiple contracts.
- A memo from Deputy Secretary Steve Feinberg called for increasing Palantir’s funding by $244 million through March 2027.
- The fiscal 2027 budget requested $2.3 billion for MSS and the Joint Fires Network.
- Palantir’s U.S. government revenue growth accelerated to 90% in Q2, up from 5% in Q4 2023.
Palantir Technologies (PLTR) is trading at $183.12, up 3.17%, as Wall Street attention turns to the company’s expanding footprint inside the Pentagon.
Palantir Technologies Inc., PLTR
William Blair analyst Louie DiPalma reiterated an Outperform rating on Palantir on Wednesday, saying the company’s Maven Smart System is “surging” toward $1 billion in annual recurring revenue.
The firm’s government contract tracker shows MSS is Palantir’s largest overall contract. DiPalma described the Pentagon as going “all in” on the platform.
“All signs point to continued strong growth over the next nine months,” DiPalma wrote, adding that MSS is expected to reach program-of-record status by end of September.
A memo dated August 4 from Deputy Secretary of War Steve Feinberg, titled “Funding Palantir,” called for a $244 million increase in Pentagon funding for Palantir between now and March 2027.
A separate memo from March 9 ordered MSS to become an official program-of-record by the end of September. That designation would lock in the platform’s status within Pentagon procurement.
The fiscal 2027 budget requested $2.3 billion for MSS and the Joint Fires Network, a jump from prior years.
Maven on the Battlefield
DiPalma noted that MSS has been described internally as “just as important on the battlefield as its most important munitions.” The system has been used alongside large language models for mission planning, analytics, and targeting during Operation Epic Fury and Operation Absolute Resolve.
William Blair calculates that MSS has been the primary driver behind Palantir’s U.S. government revenue growth accelerating from 5% in Q4 2023 to 90% in Q2 2026.
Overall, Palantir’s revenue grew 79% over the last twelve months as of Q2 2026, with gross profit margins sitting at 84.8%.
Recent Analyst Activity
Palantir’s Q2 2026 results beat FactSet consensus estimates. Revenue came in 6.8% above projections, operating income beat by 10.5%, and free cash flow was 9% higher than expected.
Following those results, UBS raised its price target to $220, citing revenue growth acceleration to 93% and upgraded full-year guidance to 82% growth.
Truist Securities lifted its target to $223, pointing to sovereign AI demand as a growth driver. Truist also reiterated a Buy rating, highlighting Palantir’s recruiting edge in AI talent.
Phillip Securities raised its target to $215, reflecting a 6% increase in fiscal 2026 revenue and net income forecasts.
Benchmark kept a Hold rating, citing Palantir’s improved Rule of 155 score.
William Blair flags competition from LLMs as the main risk, noting that former Palantir engineers could potentially build similar tools on LLM platforms at lower cost.
The firm also flagged that an MSS rollout slowdown could occur under a change in political administration.
Palantir’s market cap currently stands at $420.73 billion, though InvestingPro flags the stock as overvalued relative to its Fair Value estimate.
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