Days after reporting strong second-quarter results, Palantir Technologies (NYSE: PLTR) gave investors even more good news when it announced an expanded partnership with (NASDAQ: MSFT). The aim is to sell analytic and artificial-intelligence (AI) services to various defense and intelligence agencies within the federal government.

Palantir built its reputation helping U.S. government intelligence agencies track and fight terrorism through its data gathering and analytics platform, but the government has actually become one of the weak spots for the company over the past couple of years. Let's look at how this deal could change that.

The U.S. government has long been Palantir's largest customer, although its growth has become a weak spot for the company. Total government revenue growth, including foreign governments, slowed to 19% in 2022 and only 14% in 2023.

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Source Fool.com