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Investing.com -- Palantir Technologies has secured an agreement with the U.S. Army that could be worth up to $10 billion over the next decade, marking one of the largest software contracts in Defense Department history.
The U.S. Army announced that it is consolidating dozens of contracts into a single enterprise deal, offering volume-based discounts and the option to purchase up to $10 billion from the software provider over a 10-year period.
According to Wedbush analysts, the enterprise agreement consolidates 75 separate deals, including 15 prime contracts and 60 related agreements, into a single framework.
The Army said the move is designed to accelerate the deployment of artificial intelligence and data integration tools while eliminating contract-related fees and shortening procurement timelines.
Wedbush called it a “massive U.S. Army deal,” adding that the framework allows the Army to purchase software and services from Palantir (NASDAQ:PLTR) on an as-needed basis while benefiting from “volume-based discounts.”
Although the contract does not commit the Army to any specific purchase amount, it lays the groundwork for extensive use of Palantir’s technology over the coming decade.
“This contract win comes just a few months after the company’s first ever billion-dollar contract,” Wedbush noted, describing the agreement as a “positive growth catalyst” as the Pentagon increases its focus on AI and digital modernization.
Palantir’s software is already embedded across various Department of Defense programs, which Wedbush believes are “not at risk of getting cut in this new spending climate,” positioning the firm well to gain further budget share.
With earnings set to be released Monday, Wedbush expects “strong AI-driven results” and sees the deal as further validation of Palantir’s strategic importance.
The firm maintains its Outperform rating and $160 price target on Palantir, calling it “one of our top tech names to own in 2025.”