Strong Palantir (PLTR) Results Fail to Shift RBC's Bearish Stance

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the 10 AI Stocks to Keep on Your Radar. On February 2, RBC Capital analyst Rishi Jaluria reiterated an Underperform rating on the stock with a $50.00 price target. The firm holds its bearish view on PLTR despite its strong guidance and beat.

The firm highlighted how Palantir reported a solid beat, with 2026 revenue growth guidance of 61% ahead of consensus at 41%. Fourth quarter revenue beat consensus by 5%, and shares rose roughly 8% after hours. Growth accelerated meaningfully across both commercial and government segments. Commercial revenue was up 82% year-over-year and government revenue up 60%, both exceeding consensus.

Margins and earnings also surprised to the upside. First-quarter revenue guidance of $1,532–$1,536M implies an estimated 74% YoY increase and is well above Street expectations. Palantir also projected an adjusted operating margin midpoint of an estimated 72%, well above the consensus of 48.3%.

Adj. operating margin was 57% (vs. consensus: 52.3%), while adj. EPS was $0.25 (consensus: $0.23). 1Q revenue guidance calls for $1,532–$1,536M (~74% YoY), above consensus at ~$1,326M, while adj. operating margin midpoint was set at ~72%, above consensus of 48.3%. 2026 revenue guidance was set at $7,182–$7,198M (above consensus at ~$6,295M) and US Commercial revenue guidance exceeds $3.14B which represents at least 115% YoY growth. 2026 Adj. operating margin midpoint was set at ~71%, above consensus of 49.9%, while adjusted free cash flow guidance was set at $3.925–$4.125B, above consensus of ~$2.8B. On the earnings call (5:00pm ET), we look for more detail on AIP upselling trends, updates on the federal spending environment, and any one-time nuances.

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.

While we acknowledge the potential of PLTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.