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Palantir Stock Rockets After Landing Army Contract

Palantir Technologies shares rise following its announcement that the U.S. Army awarded it an $823 million contract.

Palantir Technologies  (PLTR) - Get Palantir Technologies Report shares on Tuesday rocketed following its announcement that the U.S. Army awarded it an $823 million contract to deliver its intelligence data fabric and analytics foundation to modernize Army intelligence.

Palantir’s stock jumped by almost 14% to $26.44 in after-hours trading. Shares had closed 0.17% higher in Tuesday’s regular session.

The Denver software company said in a statement after the market close that the Army’s program manager for intelligence systems and analytics selected it to progress to the next phase of the Army’s competitive $823 million indefinite delivery, indefinite quantity contract. After collaborating with the Army on a successful “Test, Fix, Test” process, Palantir will support the Army as they proceed through final testing and fielding.

Palantir will deploy the Palantir Gotham Platform to support Army intelligence users worldwide with a globally federated intelligence data fabric and analytics platform spanning multiple security classifications, the statement said. This capability will field modern data integration, correlation, fusion, and analytic capabilities that prepare the Army for the next fight against emerging near peer threats.

The Gotham platform provides an operating system for defense decision making and is specifically designed to connect the dots between disparate sources, according to the statement. The Army intelligence community will use this capability to modernize their data foundation by migrating legacy programs to Capability Drop 2. 

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Capability Drop 2 is one of several efforts Palantir is working on with the program executive officer for intelligence electronic warfare and sensors to modernize the Army’s intelligence enterprise, alongside Capability Drop 1 and the tactical intelligence targeting access node programs.

“We look forward to the continued partnership with PEO IEW&S and the Army’s intelligence community in providing new and exciting technology that help them in their modernization efforts,” said Doug Philippone, Palantir’s global defense lead.

Earlier this year, Palantir said it was selected by the National Nuclear Security Administration to provide its security platform and related services in an $89.9 million, five-year deal.