Palantir's defence deals and DISA clearance fuel growth despite stock slump
Palantir has secured major defence contracts while reporting strong revenue growth for 2025. The company's technology stack recently gained full clearance from the U.S. Defense Information Systems Agency (DISA), allowing wider military use. Despite this progress, its stock has fallen by around 25% since January.
In early 2026, Palantir extended its partnership with Airbus to support the Skywise platform, which focuses on civil aviation. The deal enhances aircraft design, production, and airline operations using AI and cloud migration for over 50,000 daily users. This follows a separate £240.6 million, three-year contract with the UK Ministry of Defence and ongoing collaboration with Boeing Defense.
The DISA approval covers Palantir's entire suite—Apollo, Gotham, Foundry, and AIP—at Impact Level 6, permitting deployment for classified government tasks. A new 'authorize once, use many' framework now speeds up procurement for customers adopting these pre-authorized systems. The company's edge-deployment capability also allows its software to run on customer-chosen hardware, including mobile devices for tactical missions.
Financially, Palantir reported a 70% year-over-year revenue jump in Q4 2025, with U.S. commercial sales up 137%. For 2026, it forecasts 61% total revenue growth and a 115% increase in U.S. commercial business. Yet, despite these gains, analysts remain split on the stock market's outlook, with some advising caution amid its recent decline.
Palantir's latest contracts and DISA clearance expand its defence and commercial reach. The company's revenue projections remain strong, though its stock performance has weakened. The new authorization framework and edge-deployment options could further streamline adoption across government and private sectors.
