Palantir or Zeta: Which AI-Powered Data Company Makes for a Smarter Investment?

Overview: Palantir and Zeta Global in the AI Software Landscape

Palantir Technologies Inc. (PLTR) and Zeta Global Holdings Corp. (ZETA) are leading software firms specializing in artificial intelligence, focused on converting vast amounts of data into practical insights for their clients. Their platforms utilize machine learning and sophisticated analytics to help organizations enhance customer engagement, streamline operations, and make informed strategic choices.

Both companies primarily earn revenue through enterprise partnerships and multi-year contracts, benefiting from high switching costs and deeply integrated workflows. As businesses increasingly adopt AI, the need for scalable data solutions and predictive analytics is rising, positioning both Palantir and Zeta at the forefront of this trend, with enterprises investing heavily in AI-powered platforms to boost productivity and gain a competitive edge.

Why Palantir Stands Out

Palantir’s core offering is its Artificial Intelligence Platform, designed to help organizations organize, integrate, and manage complex data sets so AI can be deployed effectively. Many enterprises face challenges with fragmented data across departments such as finance, operations, supply chain, and HR. PLTR addresses this by using an ontology-based system that creates a digital representation of an organization’s processes.

This approach allows AI to interact directly with business operations, producing actionable results rather than isolated insights. Palantir’s position in the AI ecosystem is tied to delivering outcomes and value, rather than simply providing computing resources—a distinction that becomes more important as companies move from AI pilots to full-scale implementation.

Palantir’s adoption of AI has led to significant revenue growth. In the fourth quarter of 2025, the company reported $1.41 billion in revenue, marking a 70% increase year-over-year and a 19% rise from the previous quarter. Annual revenue reached $4.48 billion, up 56% from the prior year, demonstrating sustained momentum.

Customer expansion further supports Palantir’s strategy. The company closed Q4 with 954 clients, a 34% increase from the previous year, and net dollar retention climbed to 138%, indicating substantial growth within existing accounts.

Growth was driven by major, strategic contracts rather than small, experimental deals. The total value of contracts hit a quarterly high of $4.26 billion, with 61 agreements exceeding $10 million each.

Zeta Global’s Strategic Advantage

Zeta Global’s collaboration with OpenAI to enhance its Athena platform is not just a technical upgrade—it’s a strategic move that strengthens the company’s financial outlook and confidence in its long-term growth. By integrating OpenAI’s advanced reasoning into Athena, Zeta Global is transforming its marketing platform into a smarter, more predictive, and highly automated solution.

This improvement allows clients to gain deeper insights and run more effective campaigns, which boosts customer loyalty and attracts new enterprise clients. As adoption grows, Zeta enjoys greater recurring revenue and improved monetization, directly linking its AI partnership to stronger financial performance.

The company’s leadership has already responded to this positive trend by raising its 2026 revenue forecast to $1.75–$1.76 billion, an increase of $25 million from previous guidance. This upward revision reflects accelerating adoption of AI-powered solutions and greater enterprise engagement.

Operational efficiency is also improving, with adjusted EBITDA now projected at $389.9–$392.1 million, up $6 million from earlier estimates. This demonstrates Zeta’s ability to grow revenue while maintaining disciplined, scalable operations.

Comparing Zacks Estimates for PLTR and ZETA

Zacks Consensus forecasts for PLTR in 2025 show expected sales growth of 61% and EPS growth of 79% year-over-year, with EPS estimates trending higher over the past two months.

Source: Zacks Investment Research

For ZETA, Zacks projects a 36% year-over-year increase in EPS for 2026, though EPS estimates have declined in the past 60 days.

Source: Zacks Investment Research

Valuation: ZETA vs. PLTR

ZETA’s forward 12-month price-to-earnings ratio stands at 17.49, well below its historical median of 73.65, suggesting the stock may be undervalued. In comparison, PLTR trades at a forward P/E of 94.21, which is also below its 12-month median of 298.64.

Investment Outlook: PLTR Takes the Lead

Both PLTR and ZETA are positioned to benefit from the growing enterprise AI market, but Palantir is the stronger contender. Its platform is deeply integrated into essential business functions, enabling sustained growth through large-scale, strategic deployments. This foundation provides greater revenue visibility and increases customer reliance. While Zeta’s prospects are promising, they depend more on execution. With robust earnings momentum, expanding enterprise adoption, and a favorable analyst consensus, Palantir stands out as the more attractive and dependable AI investment at this time.

Currently, PLTR holds a Zacks Rank #2 (Buy), while ZETA is rated Zacks Rank #3 (Hold).

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