Palantir quietly makes massive AI war play

Palantir’s (PLTR) hot streak just got a brand new tailwind.

The stock has been a standout performer this year, surging to new all-time highs as investors continue to salivate over AI infrastructure winners. The momentum has been fueled by a combination of real-world deployments and growing use cases across the defense and enterprise stacks.

At the same time, Palantir’s potent government engine continues widening its lead. 

Agencies have been flocking to its robust platforms to fuse data, speed up decision-making, and tighten networks. Similarly, commercial players are following an identical playbook, leaning hard on AI to bump productivity while taming costs at the same time.

And now, a new signature adds some serious muscle to Palantir’s head-turning government segment.

On Oct. 27, Palantir executed a major defense AI pact, one with major long-term implications for its broader AI war footing, which is likely to become a massive on-ramp to Palantir’s next leg higher.

Palantir’s Poland pact plants another flag in Europe’s defense AI

Poland just put Palantir on speed dial. 

On Oct. 27, Defense Minister Władysław Kosiniak-Kamysz and CEO Alex Karp signed a letter of intent in Warsaw to effectively strengthen their cooperation across data integration, AI, and cybersecurity. Naturally, the development adds another layer to Palantir’s already-illustrious growth story on NATO’s eastern flank. 

The agreement is essentially an LOI at this point, which tees up workstreams and procurement pathways with Poland’s Ministry of National Defense. This news follows a separate PGZ-Anduril collaboration on cruise missiles, highlighting Warsaw’s broader modernization push in defense. 

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It’s also worth noting that Poland is among NATO’s largest spenders relative to its GDP, planning to allocate nearly 4.8% to 5% of its GDP to defense.

For Palantir, the government has been the critical growth engine. For instance, in Q2 2025:

• Total revenue:$1.004 billion (up 48% year over year)
• Government revenue:$553 million (up 49% year over year), forming 55% of the total

Why Poland agreement is significant for Palantir

The powerful new defense pact throws greater weight behind Palantir’s growing European footprint, following NATO’s adoption of its Maven Smart System. 

It also underscores the strength in Palantir’s AI technology to effectively scale from pilot to full deployment. On top of that, it built on July’s $10 billion U.S. Army enterprise deal, offering Palantir multi-year visibility domestically while opening up new opportunities overseas.  

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Though the deal isn’t moving numbers yet, it reinforces the theme of small pilots becoming high-margin, multi-year contracts fueling expansion while reducing Palantir’s reliance on U.S. defense spending.

Takeaways on Palantir-Poland deal:

• Poland deal adds momentum: Palantir signed an LOI with Poland’s Defense Ministry to expand AI, data, and cybersecurity cooperation.
• Big budgets in play: Poland plans to spend 4.8% to 5% of GDP on defense, paving the way for a fertile ground for long-term AI contracts.
• Earnings lift: With government sales jumping 49% YOY, converting this LOI will fuel sustained expansion while diversifying Palantir beyond U.S. defense revenue.

Chris Versace hikes Palantir target to $220 on defense-fueled AI surge

Chris Versace isn’t done betting on Palantir’s unmatched AI surge. 

The veteran fund manager of TheStreet Pro portfolio just bumped hisprice target on Palantir Technologies to $220 from $205, on the back of multiple new signals that the AI software giant’s story is gaining even more altitude.

The price target increase comes with guardrails, though, including a panic point that’s lifted to $150 (from $145) along with a pickup point to $172 (from $160). Multiple data points indicate an acceleration in AI adoption across both commercial and government sectors.

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However, for Palantir, the catalysts are a lot more specific. 

On Oct. 27, it inked an LOI with Poland’s Defense Ministry, a move that anchors Palantir deeper into NATO’s eastern front. Also, with Poland’s defense outlays at an eye-popping 4.8% to 5% of GDP, the deal will be a meaningful long-term revenue driver.

Also, there’s the massive $200 million multi-year deal with Lumen Technologies, along with a fresh partnership with Snowflake, which collectively expand Palantir’s reach across both stacks.

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