Palantir shares closed Tuesday at $192.60, down 0.8%, after HSBC Asset Management said it is reviewing whether to keep the company in its roughly $9 billion Islamic Global Equity Index fund. The review follows questions from UK pension schemes Nest and People's Pension over Palantir's US and Israeli defence work. HSBC bought about $38.3 million of Palantir shares in the first half of 2026, a position that is small relative to the company's $462.8 billion market capitalisation.
The stock's Tuesday drop of $1.55 came one day after a 4.36% rebound to $194.15, the best session since early September. That rally was driven by a partnership with Knox Systems to combine Knox's managed federal cloud and accelerated FedRAMP authorisation path with Palantir's accredited infrastructure, targeting high-security Department of War environments. Palantir's global head of business development, Kevin Kawasaki, said: "The mission can't wait for technology to catch up."
The HSBC review is small in dollar terms, but the precedent matters: the fund tracks the S&P Global 1200 Shariah Select Index, so removing Palantir would mean either overriding the index or pressing S&P to change its screen. Umer Suleman of the Islamic Finance Council UK said several fund investors had voiced "outrage and shock" at the holding.
At $192.60, Palantir trades at 164.7 times trailing earnings, with a 52-week range of $106.37 to $212.94. Analyst targets are split: Mizuho has $245, Baird $250, Barclays $265, Goldman Sachs $230, while Phillip Securities downgraded to Hold at $215. The average target is $201.61 to $206.43. Technical levels put support near $186 and resistance in the $195-$200 zone, with the record at $212.94.
Next major catalyst is Q3 2026 results on Monday 2 November after the close. Guidance is for revenue of $2.160-$2.164 billion and adjusted operating income of $1.292-$1.296 billion. Broader market factors include a 10-year Treasury yield at 5.14 percent and the FOMC meeting on 27-28 October, plus tech earnings from Tesla and Meta on Wednesday that could sway AI software sentiment.
