Palantir vs. SoFi: Which High-Growth Tech Stock is the Better Buy Now?

Both Palantir Technologies Inc. PLTR and SoFi Technologies, Inc. SOFI are fast-growing, innovation-driven technology companies deeply focused on using data, software, and advanced automation to reshape their respective industries.

Each operates on scalable digital platforms designed to improve decision-making, streamline complex processes, and deliver superior user experiences. Both companies invest heavily in product innovation, rely on decision-centric architectures and continuously upgrade their technology stacks to stay ahead of evolving market needs. They also benefit from long-term secular trends such as digital transformation, AI adoption, and the shift toward cloud-native solutions. Despite serving different markets, both share a common ambition: redefining traditional operating models through technology-led disruption.

The Case for PLTR

At the heart of Palantir’s success is its Artificial Intelligence Platform (AIP), which is rapidly evolving into its primary growth engine. In the third quarter of 2025, U.S. commercial revenues surged 121% year over year. Thanks to AIP, the total U.S. commercial contract value skyrocketed 342% YoY, while the remaining deal value climbed 199% to $3.6 billion. The customer count also grew 45% year over year, underscoring PLTR’s ability to scale rapidly while maintaining high customer satisfaction.

Beyond revenue growth, Palantir’s profitability metrics improved significantly in the last reported quarter. The company achieved its highest-ever adjusted operating margin of 51%, reflecting the scalability of its software business model and disciplined cost control. GAAP operating income reached $393 million, while GAAP net income came in at $476 million, translating to GAAP EPS of 18 cents and adjusted EPS of 21 cents that beat the Zacks Consensus Estimate of 17 cents.

Gross margins remained robust at 82%, underscoring the company’s high-value, software-as-a-service-based operations. Healthy cash flows complement the strong profitability. Palantir generated $508 million in cash from operations and $540 million in adjusted free cash flow during the quarter. The company ended the quarter with a solid $6.4 billion in cash, cash equivalents and U.S. Treasury securities, providing ample liquidity for future investments, research and acquisitions.

The expanding mix of commercial revenue, coupled with long-term government partnerships, positions Palantir to maintain steady growth while diversifying its revenue base. Its ability to balance innovation and financial discipline gives the company a unique competitive advantage in the enterprise AI landscape.

The Case for SOFI

Management’s focus on innovation continues to drive SoFi’s competitive advantage. The launch of SoFi Pay, enabling fast and low-cost international payments through blockchain, represents a strategic step into global financial connectivity. Plans for a SoFi USD stablecoin in 2026 further underscore its intent to capitalize on blockchain technology’s potential in mainstream finance.

The relaunch of crypto trading features, including buy, sell and hold options, within the SoFi app aligns with growing investor interest in digital assets. Meanwhile, the forthcoming AI-driven SoFi Coach, an expansion of its existing Cash Coach, promises to provide personalized, AI-powered financial guidance across users’ accounts.

Adding to its lineup, SoFi unveiled the SoFi Smart Card, combining 5% cash back on food purchases, credit-building features, and access to competitive deposit and borrowing rates. These moves not only strengthen SoFi’s ecosystem but also deepen customer engagement and brand loyalty. Marketing partnerships are amplifying this momentum. A new collaboration with NFL MVP Josh Allen to promote SoFi Plus, the company’s premium product offering, highlights its growing brand strength.

SOFI delivered a stellar third quarter, underscoring its transformation from a digital lender to a diversified financial services platform. The company reported record adjusted net revenue of $950 million, up 38% year over year, beating the Zacks Consensus Estimate by 6.6%,marking its eighth consecutive profitable quarter. Net income reached $139 million, translating to earnings per share of 11 cents, beating the consensus estimate by 22%.

Adjusted EBITDA came in at a record $277 million with a 29% margin, while nonlending revenues surged 57% year over year. The lending segment also performed robustly, with $481 million in revenues, up 23% from last year. Total loan originations reached a record $9.9 billion, up 57% year over year, driven by strong demand for personal and home loans.

SoFi also strengthened its balance sheet, raising $1.7 billion in new capital and increasing total deposits by $3.4 billion to $32.9 billion. This growing deposit base enhances funding stability and supports lending expansion without excessive reliance on external financing.

How Do Zacks Estimates Compare for PLTR & SOFI?

The Zacks Consensus Estimate for PLTR’s 2025 sales and EPS indicates year-over-year growth of 54% and 78%, respectively. EPS estimates have been trending upward over the past 60 days.

The Zacks Consensus Estimate for SOFI’s current year sales suggests 37% year-over-year growth, while EPS is expected to grow 140%. EPS estimates have been trending upward over the past 60 days.

SOFI’s Valuation More Attractive Than AppLovin

UiPath is trading at a forward sales multiple of 7.78X, above its 12-month median of 5.86X. Palantir’s forward sales multiple stands at 64.36X, below its median of 69.27X.

Which Stock Wins Now?

Both Palantir and SoFi offer compelling long-term growth narratives supported by strong execution, rising demand and meaningful innovations in their respective markets. Palantir stands out for its accelerating momentum in enterprise AI, expanding commercial footprint and improving profitability profile, all of which strengthen its competitive positioning as organizations adopt AI at scale. SoFi, meanwhile, continues to broaden its financial ecosystem and deepen customer engagement through product innovation. However, given Palantir’s faster adoption of its AI platform and its strengthening leadership in a rapidly expanding category, PLTR edges out SOFI as the more attractive Buy right now.

PLTR and SOFI stocks currently carry a Zacks Rank #2 (Buy) each. 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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