Palantir Secures Sole Source Contract from NASA with No Competitive Bidding

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Palantir Secures Major NASA Contract for Foundry Software

In a significant milestone, Palantir Technologies has successfully landed a pivotal contract from NASA for its Foundry software suite, awarded without any competitive bidding process. This rare achievement underscores Palantir’s stronghold in obtaining governmental contracts.

Palantir Foundry software purchase details and deadlines for contract notice ID 80NSSC25914431Q.

Palantir’s contract with NASA’s Shared Services Center pertains to its Foundry suite, designed to support complex data analysis and integration tasks. Significantly, this award is designated as a sole source contract, indicating that NASA found no other vendor capable of delivering the same level of specialized service.

$PLTR NEW PALANTIR DEAL WITH NASA 🚀 Even though fund managers that blew up their accounts in 2021 proliferate ideas around shorting Palantir, what is UNDENIABLE is the ability for this company to get deals other software companies cannot. This was a “Sole Source” contract… https://t.co/fFCMQsNgl6

— amit (@amitisinvesting) August 21, 2025

Palantir’s Growing Portfolio and Government Contracts

For context, Palantir operates two primary platforms: Gotham, which focuses on the analytical needs of governmental entities, and Foundry, designed for enterprises looking to streamline data management. The firm has also advanced its Artificial Intelligence Platform (AIP), allowing organizations to seamlessly integrate diverse AI models into their operations through intuitive applications and agents.

This announcement further cements Palantir’s reputation as a frontrunner in securing government contracts. Recently, the company also achieved a remarkable $10 billion agreement with the US Army, consolidating 75 separate deals into a single enterprise contract. Despite having around 800 customers, Palantir continues to stand strong against competitors like Databricks, which boasts about 15, 000 clients, particularly in revenue generation.

Market Performance and Future Outlook

It’s important to note that Palantir’s stock has recently faced a downturn, experiencing approximately a 20% drop due to broader market volatility and a notable short-selling campaign by Citron Research. However, this setback has not dampened investor enthusiasm regarding Palantir’s capacity to increase its revenue streams.

In fact, Palantir’s recent quarterly earnings report, released earlier this August, showcased substantial growth, with revenues reaching $1.004 billion—surpassing the anticipated $939.71 million. The company’s impressive metrics included 157 contracts of over $1 million, 66 contracts surpassing $5 million, and 42 contracts exceeding $10 million. As a result, the total contract value (TCV) surged to an unprecedented $2.27 billion, reflecting a staggering 140% increase year-over-year.

Notably, Palantir’s commercial division is projected to generate more than $1.302 billion in fiscal year 2025, marking an expected growth rate of at least 85% year-over-year. CEO Alex Karp has ambitious plans to increase this run-rate tenfold within the next five years, which could translate to a compound annual growth rate (CAGR) of 58%, according to UBS’s estimates.

The company’s guidance remains robust, forecasting revenues between $1.083 billion and $1.087 billion for the upcoming third quarter, alongside a raised full-year revenue projection to between $4.142 billion and $4.152 billion, with free cash flow anticipated to fall between $1.8 billion and $2.0 billion.

We have reached out to NASA for further insights regarding this contract and will update this article with any relevant responses received.

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