Palantir Stock Surges 565% on $10B Military Contract

Palantir Technologies has emerged as the best-performing stock of 2025, with its shares surging 565 percent over the past year and more than doubling in 2025 alone, making it the top performer on the S&P 500. The company, known for its AI-powered software widely used by military, intelligence, and law enforcement agencies, recently reported quarterly revenue exceeding $1 billion, surpassing Wall Street expectations. Under President Trump's second term, Palantir has secured at least $300 million in new federal contracts, including major agreements with the Federal Aviation Administration, CDC, and Fannie Mae. Notably, Palantir won a $10 billion contract to consolidate the military's software over the next decade and received an additional $795 million investment to expand the Pentagon's Maven Smart System AI program. Experts note that Palantir was strategically positioned with advanced technology that aligns well with the administration’s focus on AI, cost efficiency, and public-private partnerships. This federal business growth suggests continued momentum for Palantir amid the government's increasing emphasis on AI initiatives.