Palantir Technologies (NASDAQ:PLTR) recently surpassed Salesforce (NYSE:CRM) in market cap, entering the top 10 U.S. tech companies. Yet, despite Palantir’s $300.4 billion valuation and blistering 71.7% YTD gain, Salesforce continues to deliver steady earnings and more than 10 times Palantir’s annual revenue. This raises a timely question for investors: when it comes to Salesforce vs Palantir, which stock is the smarter long-term buy?
While Palantir shines with AI hype and high-profile contracts, Salesforce may offer a more stable opportunity rooted in strong fundamentals and more realistic valuation.
Salesforce: Solid Growth at a Sensible Price
San Francisco-based Salesforce (NYSE:CRM) remains the global leader in customer relationship management (CRM) solutions. Its suite of products—ranging from Salesforce Starter to Slack and Data Cloud—helps businesses across industries streamline operations, automate customer service, and leverage agentic AI capabilities.
Unlike Palantir’s sky-high 278x trailing P/E, Salesforce trades at a forward P/E of 25.8x—well below its historical average. Even with the stock down 13.4% YTD, CRM has gained 13.8% in the past month, suggesting renewed investor interest.
In its fiscal Q4 2025, Salesforce posted $9.99 billion in revenue (up 8% YoY) and earnings per share (EPS) of $2.78—beating Wall Street’s $2.62 estimate. With $14 billion in cash and only $8.4 billion in debt, the company sits on a strong net cash position.
Looking ahead, Salesforce expects 7% revenue growth this quarter. EPS may dip to $1.87 due to foreign exchange impacts and ongoing AI investments, but its long-term outlook remains solid.
Analysts are bullish: CRM carries a consensus “Strong Buy” rating and an average target of $360.93—representing 24.1% upside. The Street-high target is $440, implying 51% potential gains.
Palantir: Soaring Growth With Sky-High Valuation
Denver-based Palantir Technologies (NASDAQ:PLTR) develops AI-driven data analytics platforms like Foundry and Gotham, widely used by governments and Fortune 500 companies. Palantir is riding the AI wave, with revenue up 39% YoY in Q1 2025, totaling $884 million. EPS landed at $0.13, meeting expectations.
The company closed 139 seven-figure contracts in the quarter—31 worth over $10 million. With $993 million in cash and $304 million in free cash flow, Palantir is financially healthy.
However, its massive 505% gain over the past 12 months has driven its forward P/E ratio to over 200x—raising red flags for many analysts. Despite upgraded guidance for 2025 revenue ($3.89–$3.90 billion), many are wary of its extreme valuation.
The stock’s consensus rating is “Hold,” with an average price target of $91.11—30% below its current level. Still, some remain optimistic: Bank of America has set a bullish $150 target, suggesting 15% upside.
Salesforce vs Palantir: Which Is the Better Buy?
Choosing between Salesforce vs Palantir depends on your risk appetite. Palantir dazzles with AI momentum and aggressive growth, but its valuation leaves little room for error. A single earnings miss could send shares tumbling.
Salesforce, by contrast, offers a more balanced profile: consistent revenue, solid earnings, moderate valuation, and long-term positioning in enterprise AI. Its 25.8x forward P/E may seem tame compared to Palantir, but that restraint could be exactly what cautious investors need in today’s volatile market.
Bottom Line: Stability or Hype?
If you’re chasing the next big thing and can stomach volatility, Palantir (NASDAQ:PLTR) might appeal. But if you value steady growth, strong cash flow, and attractive upside with less risk, Salesforce (NYSE:CRM) looks like the better bet in 2025.
In the Salesforce vs Palantir showdown, CRM’s fundamentals may offer a smarter, more sustainable path to portfolio growth.
Featured Image: Megapixl
