Why Palantir Shares Are Soaring In Tuesday's After Hours Session

One of the hottest and most well-known stocks is trading higher after the market close Tuesday. Here’s why.

What Happened: Software company Palantir Technologies PLTR announced Tuesday it has advanced in the awarding of an $823-million contract from the U.S. Army.

The contract is for intelligence data fabric and analytics for the Capability Drop 2 program.

Palantir has advanced to the next phase of the contract after a successful “test, fix, test” process. Palantir said it will support the Army through final testing and fielding.

“Palantir will deploy the Palantir Gotham Platform to support Army Intelligence users worldwide with a globally federated Intelligence data fabric and analytics platform spanning multiple security classifications,” the company said.

The selection of Palantir could help data integration and analytics capabilities to prepare the Army for a fight against emerging threats.

Related Link: 14 SPACs That Palantir Technologies Has Invested In Or Partnered With

Why It’s Important: Palantir’s Gotham platform is used by large companies and defense agencies to help in decision making.

“The Army Intelligence will use the capability to modernize their data foundation by migrating legacy programs to CD-2,” Palantir said.

CD-2 is one of several Palantir initiatives helping the U.S. Army.

Palantir recently reported second-quarter revenue of $376 million, up 49% year-over-year. The company closed 62 deals of $1 million or more in the second quarter.

The company guided for third quarter revenue to hit $385 million.

PLTR Price Action: PLTR shares are up 9.26% to $25.36 in after-hours trading Tuesday. 

Photo: Palantir software. Courtesy of the company.