Palantir Stock Rises Premarket After Securing $448M U.S. Navy AI Contract

Palantir Technologies (NASDAQ: PLTR) saw its stock rise sharply in premarket trading on December 10, 2025 after announcing a major $448 million artificial intelligence contract with the U.S. Navy. The agreement will deploy Palantir’s advanced AI maintenance and logistics platform, ShipOS, across the Navy’s submarine fleet — marking one of the company’s most significant defense wins to date.

U.S. Navy Secretary John Phelan and Palantir CEO Alex Karp jointly announced the deal, describing ShipOS as a transformative system built to modernize supply chain operations, reduce maintenance delays, and dramatically increase readiness for undersea vessels. The platform integrates Palantir Foundry with predictive AI models, enabling seamless logistics visibility for critical submarine programs including the Virginia-class and Columbia-class nuclear submarines.

Pilot programs have already demonstrated breakthrough improvements:

• Maintenance planning time dropped from 160 manual hours to under 10 minutes.

• Material review cycles shortened from weeks to less than one hour.

These results highlight ShipOS’s potential to significantly enhance operational efficiency and fleet readiness. Secretary Phelan noted that the Navy expects to expand the system beyond submarines to include aircraft carriers, fighter jets, and other major platforms.

This contract is part of Palantir’s broader momentum in securing enterprise-scale federal agreements. Earlier in 2025, the company secured a $10 billion enterprise software deal from the U.S. Army, consolidating dozens of smaller contracts. Combined with agreements across immigration services and treasury departments, Palantir has accumulated over $1.9 billion in federal contracts since 2008.

Market Reaction & Financial Strength

Following the announcement, PLTR traded at $184.31 in premarket hours, up 1.36% from the previous close. The stock has been one of the strongest performers of 2025, with:

• +151% year-to-date gains

• +2,457% three-year returns

• Market cap of $433.4 billion

• P/E ratio of 419.25

Financial metrics reinforce Palantir’s strong footing:

• Q3 FY25 revenue: $1.18 billion

• Earnings: $528.71 million

• Cash reserves: $6.44 billion

• Very low debt levels

Analyst targets range from $50 to $255, with an average target of $185.76, slightly above current pricing. The new Navy contract is expected to drive long-term revenue growth and further entrench Palantir as a core AI partner for U.S. defense operations.

Palantir’s accelerating momentum positions it as one of the most influential AI contractors heading into 2026.