Palantir Technologies (PLTR) has a new deal with the North Atlantic Treaty Organization — and analysts are taking note.

NATO announced Monday it had finalized a deal to use the Palantir Maven Smart System, which uses AI and data analysis to recommend targets to prioritize during battle.

That has analysts singing the stock’s praises. Louie DiPalma, analyst at William Blair, called Palantir — which makes software for big-data firms and the military — “simply irresistible” in a note on Monday.

DiPalma wrote that “Palantir’s combination of revenue growth (31% guidance for 2025) and operating margin (45% for 2025) ranks among the highest in all software.” The firm, he pointed out, grew its revenue by 50% from 2022 through 2024, a period during which its headcount only increased by 3%.

Wedbush analyst Dan Ives, meanwhile, added in a Monday note that Palantir stands to benefit from a “tidal wave” of federal government spending on AI. The firm maintained its outperform rating for the stock.

In addition to the NATO deal, Palantir’s Maven system is also used by the U.S. military. Last year, the Denver-based firm signed a $480 million, five-year contract with the U.S. Combatant Commands and a $100 million deal with the U.S. Army, Navy, and Air Force. Terms of the deal with NATO were not disclosed.

Palantir stock rose as much as 8% during Monday trading before settlingat 4.5% by the afternoon. The tech-heavy Nasdaq, where Palantir trades, was up 0.3% during that time.

Palantir has been one of the hottest tech stocks of 2025, rising 22.7% despite a wider market downturn. In February, Palantir reported revenue of $828 million for the fourth quarter of 2024 — a 36% jump year over year. Revenue from the U.S. government grew 45%, while projections for sales and profit in 2025 both topped analysts’ estimates.

—Josh Fellman contributed to this report.

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