Shares of Palantir Technologies (PLTR +2.53%) climbed on Wednesday after the data analytics provider struck a $300 million deal with the U.S. Department of Agriculture (USDA).
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Farmers have a new guardian
Palantir and the USDA will work together to protect U.S. farms, strengthen America's agricultural supply chains, and reduce the risks to the country's food production networks.
Additionally, Palantir aims to quicken service delivery and payments to farmers by helping the USDA shed burdensome bureaucratic protocols. The artificial intelligence (AI) supplier will also modernize the USDA's tech platform, thereby improving its cybersecurity capabilities and slashing maintenance costs.
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Key Data Points
"Protecting America's farmland is protecting America itself, and this work gives USDA the visibility and speed needed to safeguard our food supply," USDA chief information officer Sam Berry said in a press release. "Our farmers sustain this nation, and modern tools help us support them with greater precision."
Palantir is broadening its customer base
Defense contracts comprise a sizable portion of Palantir's rapidly growing revenue base. The company's U.S. government revenue surged 66% year over year to $570 million in the fourth quarter. Much of those sales came from military-related work.
Palantir's contract with the USDA shows it's making inroads with other government departments outside of the military.
The software specialist is further diversifying its revenue via AI-driven sales to businesses. Palantir's fourth-quarter U.S. commercial revenue soared 137% to $507 million.
This customer diversification should help to reduce the risks for Palantir's shareholders and expand its long-term market opportunity.
