1. Palantir won a $10B Army contract and $385M VA contract. 2. Only $10M of Army contact is currently obligated. 3. VA contract has no recorded obligations yet. 4. Contract revenues won't reflect until FY 2026 or later. 5. Investor caution urged due to delayed cash flow.
Although Palantir has large contracts, actual revenue recognition is significantly delayed. Historical data shows similar situations, where expected revenues did not materialize promptly, leading to stock price declines.
The contracts represent significant future potential but come with major delays that can affect market perception and stock performance. This disparity plays a crucial role in how investors value PLTR's immediate and future prospects.
The impacts will mainly be felt after FY 2026, aligning with the task order rollout. Previous contracts have similarly shown delayed revenue timelines, affecting long-term cash flow expectations.