Why Palantir Stock Popped Today
Key Points
Palantir wants to help the U.S. government defend the nation's food supply.
The AI leader is diversifying its revenue streams.
- 10 stocks we like better than Palantir Technologies ›
Shares of Palantir Technologies (NASDAQ: PLTR) climbed on Wednesday after the data analytics provider struck a $300 million deal with the U.S. Department of Agriculture (USDA).
Image source: The Motley Fool.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Farmers have a new guardian
Palantir and the USDA will work together to protect U.S. farms, strengthen America's agricultural supply chains, and reduce the risks to the country's food production networks.
Additionally, Palantir aims to quicken service delivery and payments to farmers by helping the USDA shed burdensome bureaucratic protocols. The artificial intelligence (AI) supplier will also modernize the USDA's tech platform, thereby improving its cybersecurity capabilities and slashing maintenance costs.
"Protecting America's farmland is protecting America itself, and this work gives USDA the visibility and speed needed to safeguard our food supply," USDA chief information officer Sam Berry said in a press release. "Our farmers sustain this nation, and modern tools help us support them with greater precision."
Palantir is broadening its customer base
Defense contracts comprise a sizable portion of Palantir's rapidly growing revenue base. The company's U.S. government revenue surged 66% year over year to $570 million in the fourth quarter. Much of those sales came from military-related work.
Palantir's contract with the USDA shows it's making inroads with other government departments outside of the military.
The software specialist is further diversifying its revenue via AI-driven sales to businesses. Palantir's fourth-quarter U.S. commercial revenue soared 137% to $507 million.
This customer diversification should help to reduce the risks for Palantir's shareholders and expand its long-term market opportunity.
Should you buy stock in Palantir Technologies right now?
Before you buy stock in Palantir Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $499,277!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,225,371!*
Now, it’s worth noting Stock Advisor’s total average return is 972% — a market-crushing outperformance compared to 198% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of April 22, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.
Recommended Articles
