Palantir Technologies (PLTR) continues to add to its government contract portfolio, and its latest win hits unusually close to home for millions of Americans. The company just secured a $300 million agreement with the U.S. Department of Agriculture (USDA) to modernize the agency's service to farmers and protect the nation's food supply.
For investors tracking Palantir's government business, the size and scope of this award matter. Although the bigger question is whether it moves the needle on a tech stock that has already had a historic run.
What Is the $300 Million USDA Deal With Palantir?
The agreement is structured as a Blanket Purchase Agreement, which means the USDA can draw on Palantir's services across multiple programs over time rather than a single fixed project.
Two priorities drive the deal:
- The first is what Palantir and the USDA are calling farm security as a national security issue, protecting American farmland from foreign adversary influence, supply chain disruption, and fraud.
- The second is cutting red tape for farmers seeking to access federal programs.
The centerpiece of this work is a platform called Landmark, which Palantir has already been building for the USDA. When the USDA rolled out the $11 billion Farmer Bridge Assistance Program in February, Landmark processed a record-breaking wave of online farmer sign-ups within 62 minutes of launch.
Farmers enrolled without setting foot in a county office, and more than $4.4 billion reached farmers in just the first five days. The new agreement expands on that foundation. Landmark will consolidate the USDA's patchwork of older systems into a single, secure platform.
Field staff get mobile tools, while farmers get self-service digital options so they're not burning daylight driving to government offices.
And the agency gets better visibility into risks affecting agricultural production across the country.
Palantir's Government Business Is on Fire
Palantir reported U.S. government revenue of $570 million in Q4 of 2025, up 66% year-over-year (YoY). For the full year, U.S. government revenue hit $1.855 billion, up 55% YoY.
Chief Executive Officer Alex Karp put it bluntly on the earnings call: "Our weapon software is in every combat situation I'm aware of."
He pointed to the company's Rule of 40 score, a metric that combines revenue growth and profit margin, that surpassed 125% in Q4. For context, most healthy software businesses aim for a score above 40.
The company also closed its highest-ever total contract value bookings quarter at $4.3 billion, up 138% YoY.
The USDA deal fits squarely into the pattern Palantir has been building. In addition to defense, Palantir is targeting other government verticals such as civil agency work, healthcare, and logistics.
Should You Buy PLTR Stock Now?
Palantir is guiding for 61% revenue growth in 2026 and over $3.1 billion in U.S. commercial sales.
Valued at a market cap of $338 billion, PLTR stock trades at a significant premium to most enterprise software peers. It is priced at 46.5x forward sales and 107x forward earnings, which is quite steep.
Out of the 26 analysts covering PLTR stock, 15 recommend “Strong Buy,” nine recommend “Hold,” one recommends “Moderate Sell,” and one recommends “Strong Sell.” The average Palantir stock price target is $197.87, above the current price of about $141. The USDA deal is a positive signal, showing Palantir expanding its civil agency footprint in a way tied to tangible outcomes.
For investors already holding PLTR, this is a reason to stay patient. For those on the sidelines, the story keeps getting stronger—but the valuation means the margin for error remains thin.
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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