Palantir Technologies Inc. shares climbed in Monday premarket trading as escalating military conflict between the U.S. and Iran drove investor demand for defense-focused artificial intelligence. Investors are rotating capital into companies with significant government and military intelligence exposure. Palantir provides data analytics platforms to the U.S. military and intelligence community.
The surge follows Palantir’s fourth-quarter 2025 financial results. The company reported a 70% year-over-year revenue increase. U.S. Commercial revenue grew by 137% during the same period.
Palantir shares rose while broader market futures declined. This divergence indicates a flight to quality within the defense technology sector.