Wall Street is handing Palantir two very different verdicts heading into its third-quarter report. JPMorgan opened coverage with an “Overweight” rating and a price target of 262 US dollars for December 2027, implying more than 30% upside from the stock’s recent level as cited by the bank. RBC Capital Markets, by contrast, reiterated its “Underperform” rating and 90-dollar target, with analyst Rishi Jaluria pointing to valuation concerns ahead of the numbers.
The shares slipped 2.0% on the day, with media reports citing repositioning ahead of the release and consolidation following earlier gains.
The bull case rests on cash, not just revenue
JPMorgan’s thesis goes beyond a simple bet on rising sales. The bank anchors its view in the company’s ability to convert growth into hard cash, citing revenue growth of 93% year over year in the most recently reported
Those figures explain where the analysts place their emphasis. For investors, the test is not only the top line but how much freely available cash flow emerges from it.
The price target itself reaches well past the imminent report. JPMorgan bases it on 55 times expected free cash flow for 2028, for which the bank models 11.7 billion US dollars. That implies an average annual growth rate in free cash flow of 77% over three years. The central requirement behind the positive rating is therefore a forecast rather than a delivered result — should cash generation fall short of those assumptions, a key pillar of the target would weaken.
Should investors sell immediately? Or is it worth buying Palantir?
JPMorgan also issued a positive short-term observation rating for the upcoming results, signaling confidence in the release even though its own estimates largely match the analyst consensus.
A split tape before the print
Rosenblatt Securities struck a different note on the prior day, with analyst John McPeake lifting his price target to 260 dollars from 225 while confirming his buy rating. The picture before the release is thus a reaffirmed skeptical view alongside a raised target with an unchanged positive stance.
Palantir has scheduled its third-quarter 2026 results for November 2, 2026, after the US market close, followed by a webcast at 5 pm ET. The reporting quarter ended on September 30. Citi expects revenue once again above market expectations for the period, driven by the US government business and commercial customers, and is not deterred by the significantly higher comparative base. The bank confirmed its buy rating and raised its target to 250 dollars from 245.
Deals keep stacking up
On the operational front, Stagwell and Palantir announced an expansion of their strategic partnership on October 22, aiming to build AI-powered marketing solutions for enterprise clients, with Stagwell set to serve as Palantir’s lead partner for marketing transformation. A day earlier, Palantir unveiled sovereign AI deployments involving L3Harris, McCarthy Building Companies and others, with the announcement noting more than 30 consolidated ERP systems at L3Harris. And on October 19, Knox Systems and Palantir announced a partnership intended to speed up the delivery of software for government customers in FedRAMP and IL5 environments.
Both camps, whatever their targets, are watching the same thing: whether Palantir can keep translating its growth into substantial free cash flow.
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