PLTR, MRCY Stocks Gain After Announcing Partnership To Automate US Defense Manufacturing

Wall Street is expecting Palantir to report earnings per share of $0.35 on revenue of $1.8 billion in its Q2 report scheduled after the bell.

• The companies stated they would automate factory operations and material planning to increase production without extending delivery schedules or raising costs.
• Palantir will deploy its Foundry platform to build a digital model of Mercury's manufacturing operations, improving planning and decision-making.
• The partnership expands Palantir's growing presence in defense technology following collaborations with companies including Anduril, SpaceX, and OpenAI.

Shares of Palantir (PLTR) and Mercury Systems (MRCY) rose in morning trade on Monday after the companies announced a strategic partnership aimed at improving manufacturing efficiency for U.S. defense programs.

This marks another move deeper into the defense sector for Palantir, which is scheduled to report second quarter (Q2) earnings after the bell. PLTR stock rose over 2% at market open, while MRCY stock gained over 6%. 

On Stockwits, retail sentiment around Palantir remained in the ‘neutral’ zone over the past day, while sentiment around Mercury Systems improved to ‘bullish’ from ‘neutral’ territory.

Palantir, Mercury Systems Partner To Improve Defense Manufacturing

Palantir said it would deploy its software to help Mercury automate factory operations and material planning for programs supporting the U.S. Department of Defense. The companies stated that the initial focus will be on reducing manual work, improving manufacturing efficiency, and increasing production without raising costs or delaying deliveries.

Palantir also plans to build Mercury, an "enterprise ontology" described as a digital twin of the company's operations and business practices, using its Foundry platform to enable faster decision-making and more predictable production schedules.

Partnership Adds To Palantir's Defense Expansion Ahead Of Earnings

Over the past two years, Palantir has increasingly positioned itself as a key technology partner for defense manufacturers and military programs. The company has worked closely with defense startup Anduril and other technology firms, including SpaceX (SPCX) and OpenAI, on projects designed to modernize U.S. military capabilities. That consortium has secured work tied to the Pentagon's Golden Dome missile defense initiative and the Army's Robotic Combat Vehicle program.

In its Q2 report scheduled after the bell, Wall Street is expecting Palantir to report earnings per share (EPS) of $0.35 on revenue of $1.8 billion. 

PLTR’s stock has fallen over 30% this year and around 23% in the last 12 months. Meanwhile, MRCY’s stock has gained over 30% this year and climbed more than 80% in the last 12 months.