Palantir Did Not Win the FAA's SMART Contract
The Federal Aviation Administration (FAA) announced a new AI-based air traffic management system called Strategic Management of Airspace, Routes, and Trajectories (SMART). Analysts had speculated that Palantir Technologies might win the contract due to its capabilities in data integration. However, the $875 million, 12-year deal was awarded instead to Air Space Intelligence. Despite not securing the SMART contract, analysts suggest investors may still find little benefit from it even if Palantir had won. The company's stock is currently trading at a high valuation with a P/E ratio of 164 and forward P/E of 119, making it expensive relative to earnings growth. Palantir reported strong revenue growth in the first half of 2026—up nearly $3.6 billion from $541 million year-over-year—but its high valuation increases vulnerability to market corrections due to any negative news.
Tickers: $PLTR
Topics: AI air traffic management Palantir Technologies valuation analysis