Palantir Wins $90 Million Contract With U.S. Veterans Affairs
(Bloomberg) -- Palantir Technologies Inc. said Thursday it won a contract with the U.S. Department of Veterans Affairs, the latest in a steady drumbeat of new government deals for the company.
The contract -- a $90 million, four-year deal -- comes just days after Palantir renewed and expanded contracts with the U.S. Army and the National Institutes of Health. Those deals are worth nearly $900 million over several years.
The contracts, along with the new Veterans Affairs deal, expand the data company’s use within national agencies, inching Palantir closer to the goal it laid out in an investor letter of “becoming the default operating system across the U.S. government,” and reversing what had previously been a slump in U.S. government spending.
Palantir’s expected revenue from the U.S. government in fiscal 2021, which ended Sept. 30, fell short of previous records. However, the company secured contracts with the National Nuclear Security Administration and the Coast Guard earlier this year, and in August Palantir raised its third-quarter revenue guidance on strong government uptake.
The U.S. government decreased its obligations to Palantir 25% to $198 million in fiscal 2021, according to government data site usaspending.gov.
Palantir will need to continue winning deals, like the high-profile contract with the U.S. Immigration and Customs Enforcement Agency expected to be announced in coming weeks, and expand total contract size to please investors expecting growth.
Palantir will report its third-quarter results next month. FedScoop earlier reported on the deal.
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