Piper Sandler trimmed its price target on Intapp, Inc. to $33.00 from $42.00 and held its Neutral rating, citing market and guidance dynamics that it says justify a lower valuation. Intapp shares were trading at $21.06, down sharply from the prior close of $33.64, with data from InvestingPro flagged in coverage suggesting the stock may be trading below intrinsic value.
The adjustment follows Intapp’s fiscal second-quarter 2026 report, where the company posted a number of encouraging operating metrics. Cloud annual recurring revenue (ARR) grew 31% year-over-year and SaaS revenues rose 28% year-over-year. Intapp also reported a strong gross profit margin of 74.8% and 16.8% revenue growth over the last twelve months.
Despite those results, Intapp’s stock dropped roughly 20% in after-hours trading on the day of the earnings release. The sell-off occurred even though the company beat consensus expectations for the quarter and raised its full-year 2026 guidance.
Piper Sandler pointed to two factors it believes explain the negative market reaction. First, the firm cited renewed pressure across software equities tied to the same-day release of a legal-focused tool from Anthropic, a development the analyst says could affect Intapp’s law-firm customer base. Second, Piper Sandler noted that Intapp’s updated non-GAAP operating income guidance increased by less than the magnitude of the company’s fiscal Q2 beat, and that discrepancy led the research house to reduce its fiscal third-quarter 2026 forecast for Intapp by 11%.
The research note also referenced Intapp’s upcoming Investor Day, scheduled for February 25, as an event market participants will likely watch for further clarity on the company’s outlook and strategy.
In its fiscal Q2 2026 release, Intapp beat both EPS and revenue estimates. The company posted earnings per share of $0.33 versus the $0.26 consensus, and reported revenue of $140.2 million compared with the $138.19 million expected by analysts.
Following the quarter, Stifel reduced its price target on Intapp to $40.00 from $50.00 but maintained a Buy rating. Stifel’s decision came alongside the company’s quarter-over-quarter acceleration in Cloud ARR and net revenue retention (NRR), its upward revision of the full-year SaaS outlook above Street expectations, and the announcement of a $200 million share repurchase program.
Taken together, these moves reflect Intapp’s combination of operational momentum in its cloud and SaaS offerings and active capital-allocation decisions intended to support shareholder value. Market reaction in the hours after earnings demonstrates the sensitivity of software valuations to both macro and product-market signals, as well as to guidance math in quarterly reports.
Context for investors
- Intapp delivered substantial SaaS and Cloud ARR growth in fiscal Q2 2026 while maintaining a high gross margin.
- Analyst reactions have been mixed: Piper Sandler lowered its price target and kept Neutral, while Stifel trimmed its target but retained a Buy rating.
- The company introduced a $200 million buyback program and raised full-year SaaS guidance.