Why Is Palantir Stock Up Today in Premarket? New $448 Million AI Deal With U.S. Navy

Palantir Technologies Inc. (NASDAQ: PLTR) stock surged in premarket trading on Tuesday, December 10, 2025, following the announcement of a major $448 million contract with the U.S. Navy. The deal centers on deploying Palantir’s AI-driven maintenance and logistics platform, ShipOS, across the Navy’s submarine fleet.

This significant win adds to Palantir’s growing portfolio of federal defense contracts and underscores the company’s expanding role as a critical technology provider for military operations. Investors responded enthusiastically to the news, driving the stock higher before market open.

Navy Targets Major Efficiency Gains With Palantir’s $448M ShipOS Platform

Navy Secretary John Phelan, alongside Palantir CEO Alex Karp, announced the contract on Tuesday, describing ShipOS as a transformative AI-driven platform designed to modernize supply-chain management and accelerate maintenance cycles for undersea vessels.

The platform integrates Palantir’s Foundry data analytics with advanced AI capabilities to provide real-time supply chain visibility for both Virginia-class and Columbia-class nuclear submarines, two critical programs that have historically faced production delays and maintenance challenges.

Early pilot programs have demonstrated remarkable efficiency gains, with officials reporting that submarine schedule-planning time was reduced from approximately 160 manual hours to under 10 minutes. Material review processes that previously took weeks were compressed to under one hour.

These dramatic improvements highlight the platform’s potential to significantly enhance naval readiness and operational efficiency. While the initial focus is on submarine programs, Secretary Phelan indicated the agreement may eventually expand to other naval platforms including aircraft carriers and fighter jets.

This contract represents one of several major government wins for Palantir in 2025. The company previously secured a $10 billion Army software contract in August, consolidating 75 separate agreements into a single enterprise framework.

Combined with additional contracts from immigration agencies and treasury departments, Palantir has accumulated over $1.9 billion in cumulative federal contracts since 2008, demonstrating sustained momentum in securing critical government technology partnerships.

Join our Telegram group and never miss a breaking digital asset story.

Market Reaction: Premarket Gains, YTD Performance, and Analyst Targets

Palantir stock was trading at $184.31 in premarket hours at 6:20:55 AM EST on December 10, 2025, representing a gain of $2.47 or +1.36% from the previous closing price of $181.84. The previous session saw a modest increase of $0.35 or +0.19%. The premarket surge reflects investor optimism about the Navy contract’s implications for future revenue growth and Palantir’s strengthening position in the federal defense sector.

The stock has experienced exceptional momentum throughout 2025, with a year-to-date gain of approximately 151% and a one-year return of 150.95%. Over the past three years, PLTR has delivered an extraordinary return of 2,457.52%, far outpacing the S&P 500’s 73.87% gain over the same period. The company’s market capitalization stands at $433.40 billion, with a trailing P/E ratio of 419.25, reflecting both investor enthusiasm for AI technology and expectations for continued growth in government contracts.

Financial metrics show Palantir’s strong operational performance, with quarterly revenue of $1.18 billion in Q3 FY25 and earnings of $528.71 million. The company maintains a healthy balance sheet with $6.44 billion in total cash and minimal debt, positioning it well for continued investment in platform development.

Analyst price targets range from a low of $50.00 to a high of $255.00, with an average target of $185.76, slightly above the current trading price. The combination of strong financial performance, expanding federal contracts, and AI sector momentum continues to drive investor interest in Palantir’s growth trajectory.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.