Palantir Shares Slip as RBC Flags Valuation Concerns Before Earnings
RBC keeps its Underperform rating and $90 target on Palantir, citing a rich valuation and signs of slower contract growth ahead of the November 2 report.
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what happened
Palantir Technologies is drawing fresh skepticism ahead of its quarterly report due November 2. In a note published Wednesday, RBC Capital reiterated its Underperform rating and $90 price target, and the stock dropped roughly 2% early in the session.
Analyst Rishi Jaluria puts the company at about 61 times 2026 sales and 40 times 2027 sales, measured by enterprise value, making it the priciest name in the firm's software-as-a-service coverage. Tracker data shows contract value and net new annual contract value slowing sequentially, though government demand remains high. Channel checks also raised doubts about how durable commercial growth is and whether some customers are weighing alternatives.
why it matters
RBC also pointed to growing investor interest in dividends, buybacks and possible stock splits, despite a cash balance of roughly $9 billion. The bank sees that focus as a risk if growth cools, since the company would need to show its expansion justifies the current valuation. For the market, the note highlights how sensitive expensive software stocks are to any sign of softening demand.
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- Palantir Stock Falls After RBC Delivers Fresh Warning Ahead of Earnings — gurufocus.com, 28 October 2026 at 17:40 UTC
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