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Palantir Lands Roughly $448 Million U.S. Navy Deal as Valuation Debate Escalates

Fresh military wins contrast with Wall Street skepticism over Palantir’s lofty multiples.

Overview

  • Palantir won a roughly $448 million Navy contract to manage the nuclear-submarine supply chain, with potential expansion to other maritime programs noted by the service.
  • William Blair reaffirmed a Market Perform rating following the award, citing the contract’s scale yet flagging valuation and growth considerations.
  • December updates also included reports of new U.S. Army and Navy work, reinforcing Palantir’s defense footprint alongside its commercial push.
  • Operational momentum remains strong, with Q3 revenue up 63% year over year and independent research such as Forrester ranking Palantir highly in AI/ML platforms.
  • Skepticism persists as shares trade at steep multiples, including a trailing P/E near 427, and RBC set a $50 target implying about 72% downside while bulls point to a Rule of 40 score around 114%.