Palantir Slips as Growth Cools in Q3

Palantir shares closed at $175.40 after third quarter results showed slower contract growth and flat remaining performance obligations.

Updated on Nov. 3, 2026 in Economic Indicators

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Palantir Technologies closed at $175.40, down 1.65%, after announcing third quarter results on Nov. 2. Trading volume reached 52.4 million shares, about 66% above the three-month average of 31.5 million shares.

Why it matters

Total contract value growth slowed to 11% year over year from 153% in the second quarter, and remaining performance obligations were flat quarter over quarter at $4.9 billion. The stock still trades at a forward earnings multiple of 86, leaving its valuation sensitive to any slowdown in future sales.

Palantir's remaining performance obligations reached $4.9 billion in the third quarter, unchanged from the second quarter, while total contract value growth slowed to 11% year over year from 153%. Whether the flat backlog reflects a temporary pause or a lasting slowdown has not been established.

The players

Palantir Technologies

A data analytics software company that went public in 2020 and sells platforms to government agencies and large enterprises.

The details

Palantir Technologies, which went public in 2020 and has grown 1,746% since its IPO, reported third quarter results on Nov. 2. The stock fell 1.65% to $175.40 the following day, while the S&P 500 rose 0.36% to 7,569 and the Nasdaq Composite gained 0.83% to 25,372.

Nov. 2: Palantir announces third quarter results.
Nov. 3: Palantir stock closes down 1.65% at $175.40.

Market Dynamics

Palantir's total contract value growth fell to 11% in the third quarter from 153% in the second, a sharp deceleration that stands against its earlier momentum. Investors are now weighing that slowdown against a forward earnings multiple of 86 in a broader market where the S&P 500 and Nasdaq both posted gains.

Investors holding Palantir shares face a stock priced at a forward earnings multiple of 86 after a quarter of flat backlog and slower contract growth. Anyone weighing exposure to high-valuation technology stocks should consider how sensitive those prices are to single quarters of slowing growth.

The takeaway

A single quarter of slowing growth can reprice a stock that has already risen sharply, so watching backlog trends matters as much as headline results. Investors should track whether remaining performance obligations resume growth in coming quarters.