Palantir’s Defense Partnerships Fuel Its Growth Story

Key Points

• Palantir’s unique software-first approach makes it indispensable in modern defense strategies.
• Strategic partnerships with L3Harris highlight growth through TITAN and Golden Dome programs.
• PLTR stock shows bullish technical momentum with upside toward the $200 level.

Investors have many reasons to believe in Palantir Technologies Inc. NASDAQ: PLTR as a long-term growth stock. One of the original chapters of the company’s bull thesis is its proximity and superiority in the defense sector. Palantir is quickly becoming the operating system of the U.S. government, including the Pentagon.

In the 20th century, defense spending meant hardware such as missiles and tanks. That's still relevant today, but Palantir is a 21st-century company helping the United States and its allies fight the battle of modern warfare. Its strength lies in software, specifically, the AI-powered data integration and analytics that give military and intelligence agencies actionable insights.

While Palantir is one of many technology and defense contractors, it doesn’t work alone. The company has a number of strategic partnerships that are critical to expanding its footprint and delivering real-world solutions. One of those is L3 Harris Technologies NYSE: LHX, which specializes in the design, development, and production of mission-critical systems and solutions.

Palantir + L3Harris: A Catalyst for Scale and Impact

In October 2024, L3 Harris and Palantir announced an expanded partnership to accelerate the adoption of Palantir’s AI and data integration software in U.S. defense programs. This collaboration represents far more than a one-off contract; it’s a multi-pronged alliance that strengthens Palantir’s foothold across several high-priority defense initiatives:

• The U.S. Army TITAN Program: The U.S. Army’s Tactical Intelligence Targeting Access Node (TITAN) aims to connect soldiers to data from high-altitude and space-based sensors. L3Harris and Palantir are building 10 TITAN ground station prototypes to operationalize this capability, making real-time targeting and intelligence a battlefield reality.

• Enterprise-Wide Digital Transformation: L3 Harris is leveraging Palantir’s AIP platform in its own operations to improve cost efficiency, supply chain visibility, and decision-making.

• Advanced Technology Development: The two companies are partnering to push computing to the edge, including radios as sensors and orbital processing on satellites.

Golden Dome and Hypersonic Defense: Expanding the Defense Frontier

In addition, the two companies have been named as part of the Trump administration’s nascent Golden Dome project. L3Harris has invested $150 million in building out its new facility in Fort Wayne, Indiana, where it makes the Hypersonic and Ballistic Tracking Space Sensor (HBTSS) satellites. These are part of a Pentagon effort to better detect and track hypersonic weapons with space-based sensors and could be adapted for Golden Dome. 

These partnerships are more than just business arrangements; they are a growth engine. By integrating its AI-driven platforms with L3Harris hardware and systems, Palantir strengthens its footprint in defense programs while validating its software-first approach. Unlike traditional defense contractors, which compete primarily on hardware, Palantir becomes indispensable as a software partner, giving it a unique edge in a sector where long-term relationships and system interoperability matter.

For investors, the takeaway is clear: Palantir’s value isn’t only in government contracts but in its ability to collaborate effectively with major defense players, delivering mission-critical solutions that are difficult to replicate. This combination of niche expertise and strategic partnerships forms a compelling argument for long-term growth.

PLTR Stock Continues to Have a Bullish Bias

PLTR currently shows a bullish technical setup with strong medium-term trend support at its 50-day simple moving average (SMA). The stock is also showing improving MACD momentum, and a neutral RSI (not shown) that suggests there is still room for the stock to move higher.

That puts resistance levels around $170 to $175 in play. Beyond that, the stock could challenge its all-time high around $180 and grind higher to a $200 price target, which is the expectation of some analysts.

That would suggest that PLTR stock is a buy, but investors should pay particular attention to volume trends and confirmation of an MACD crossover to confirm if this current five-day rally is a reversal from its recent pullback of over 11%.