Palantir vs. Zeta: Which AI-Driven Data Stock is the Better Buy?

Palantir Technologies Inc. PLTR and Zeta Global Holdings Corp. ZETA are both AI-centric software companies built around transforming massive datasets into actionable intelligence for organizations. Their platforms aggregate, organize, and analyze complex data using machine learning and advanced analytics to improve customer targeting, operational efficiency and strategic decision-making.

Both companies generate revenues primarily through enterprise relationships and long-term contracts, benefiting from high switching costs and embedded workflows. As businesses accelerate AI adoption, demand for scalable data infrastructure and predictive analytics tools continues to grow, placing both Palantir and Zeta at the center of the same secular trend: enterprises investing heavily in AI-driven data platforms to unlock productivity gains and competitive advantages.

The Case for PLTR

At the heart of Palantir’s strategy is its Artificial Intelligence Platform, which allows organizations to structure, integrate, and govern complex datasets so AI systems can operate effectively. Enterprises typically struggle with fragmented data across finance, operations, supply chains, and human resources. PLTR solves this problem using an ontology-based architecture that creates a digital twin of an organization’s operations.

This design enables AI to interact directly with business workflows rather than producing disconnected insights. As a result, Palantir is positioned on the demand side of the AI economy, where monetization depends on execution and outcomes rather than raw computing power. This distinction is increasingly important as enterprises shift from AI experimentation to production-scale deployments.

PLTR’s AI adoption translates directly to revenues. The company delivered one of the strongest quarters in its public-market history, closing the fourth quarter of 2025 with revenues of $1.41 billion, representing 70% year-over-year growth and 19% sequential expansion. Full-year revenues reached $4.48 billion, up 56% from the prior year, underscoring that this acceleration was sustained rather than episodic.

Customer behavior further validated Palantir’s strategy. The company ended the fourth quarter with 954 customers, a 34% year-over-year increase, while net dollar retention rose to 138%, signaling significant expansion within existing accounts.

Rather than a surge in small, experimental contracts, growth was driven by larger, more strategic deployments. Total contract value reached a quarterly record of $4.26 billion, supported by 61 deals exceeding $10 million.

The Case for ZETA

Zeta Global’s partnership with OpenAI to power Athena is more than a technological collaboration; it is a strategic catalyst that directly reinforces the company’s accelerating financial outlook and rising confidence in its long-term growth trajectory. By embedding OpenAI’s advanced reasoning capabilities into Athena, Zeta Global is transforming its already robust marketing platform into a far more intelligent, predictive, and automated enterprise solution.

This enhancement significantly increases the value of its offerings, enabling clients to extract deeper insights and execute more effective campaigns, which, in turn, strengthens customer retention and attracts new enterprise clients. This expanding adoption naturally translates into higher recurring revenue visibility and stronger monetization opportunities, forming a clear bridge between the AI partnership and the company’s improved financial projections.

This strengthening demand environment is already reflected in management’s decision to raise its 2026 revenue guidance to $1.75-$1.76 billion, representing a $25 million rise at the midpoint from the prior guidance of $1.73 billion. Such upward revision is a validation of accelerating adoption driven by enhanced AI-powered offerings and growing enterprise engagement.

The improved outlook for adjusted EBITDA, which is now expected to be $389.9-$392.1 million, up $6 million at the mid-point from the prior stated $385.4 million, further highlights the company’s expanding operational efficiency, indicating that Zeta is not only growing revenue but doing so in a disciplined and scalable manner.

How Do Zacks Estimates Compare for PLTR & ZETA?

The Zacks Consensus Estimate for PLTR’s 2025 sales and EPS indicates year-over-year growth of 61% and 79%, respectively. EPS estimates have been trending upward over the past 60 days.

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The Zacks Consensus Estimate for ZETA’s 2026 EPS indicates year-over-year growth of 36%. EPS estimates have trended downward over the past 60 days.

Image Source: Zacks Investment Research

ZETA’s Valuation More Attractive Than PLTR

While ZETA appears attractively valued with a forward 12-month P/E of 17.49X versus its median of 73.65X, suggesting that the stock could be undervalued relative to its historical range, PLTR is trading at a forward 12-month P/E of 94.21X, below its 12-month median of 298.64X.

PLTR Seems a Choice

Both PLTR and ZETA are well-positioned to benefit from the expanding enterprise AI opportunity, but Palantir emerges as the stronger choice. Its platform is deeply embedded in mission-critical operations, enabling durable expansion through large, strategic deployments rather than incremental marketing use cases. This structural positioning strengthens long-term revenue visibility and reinforces customer dependence. In contrast, Zeta’s opportunity, while promising, remains more execution-dependent. Supported by stronger earnings momentum, rising enterprise adoption, and a more favorable analyst outlook, Palantir stands out as the more compelling and reliable AI-driven investment candidate at this stage.

While PLTR currently carries a Zacks Rank #2 (Buy), ZETA has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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