Key Takeaways
- Palantir shares rose 4% today after Knox Systems announced a partnership to bring commercial software into FedRAMP and IL5 federal environments.
- The deal lets other companies’ software reach the government through Palantir’s federal accreditations, which makes Palantir more central to how agencies get new technology.
- No financial terms were disclosed, and analysts already expect revenue to climb from $4.48 billion in 2025 to $8.22 billion in 2026.
- The next test is the third-quarter report, which management guided to $2.16 billion to $2.164 billion of revenue.
Palantir Technologies (PLTR) shares are up 4% today after Knox Systems announced a partnership, before Monday’s open, to get commercial software into the government’s most tightly secured clouds.
That wins back part of Friday’s 7% drop, which pushed the stock into a correction. (Tech is having a good day, too: the QQQ (QQQ) is up nearly 2%.)
What exactly happened
Knox, which is private, runs a managed federal cloud and says it can get software makers FedRAMP authorization in 90 days or less. It already hosts more than 100 AI and enterprise applications, for customers including Adobe (ADBE), Sierra and Armis.
Palantir has already helped software companies deploy to federal agencies on its own accredited infrastructure, IL5 environments included. Put the two together, and a software maker gets one route from authorization to deployment.
As Knox CEO Irina Denisenko said in the press release: “Knox exists to get the best software in the world to the government faster, and to protect it once it’s there.”
Neither company disclosed financial terms.
Palantir becomes the on-ramp
Those accreditations are the hard part for any software maker selling to the Pentagon, and this deal puts Palantir’s to work for other companies’ products.
It also lands on top of a government business that’s already flying. Palantir’s U.S. government revenue rose 90% year over year to $809 million in Q2 2026, out of $1.94 billion in total revenue.
Analysts expect revenue to nearly double again this year, to $8.22 billion, and to reach $17.9 billion by 2028…
With no terms disclosed, there’s nothing in today’s news for analysts to add to those estimates yet.
The multiple already came down
At Friday’s close, Palantir traded at 98x forward earnings. That’s a touch below its five-year average of 103x and far from the 270x it hit in October 2025…
Today’s move puts it right back at that average. That’s still a rich price, so the next real test is the third quarter, which management guided to $2.16 billion to $2.164 billion of revenue.
My take: this is a small deal today, and the right kind for Palantir. It gets software to the government faster, and every vendor that comes through it makes Palantir’s infrastructure harder to replace.
Of course, neither company said how many vendors will sign up, so the proof comes when Palantir reports the quarter. (Or maybe next quarter.)
So what is Palantir stock actually worth?
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