Analyst Favors Salesforce Over Palantir for Enterprise AI, Citing 22 P/E Versus 139
Updated
Updated · 24/7 Wall St. · Aug 9
Analyst Favors Salesforce Over Palantir for Enterprise AI, Citing 22 P/E Versus 139
3 articles · Updated · 24/7 Wall St. · Aug 9
Summary
Salesforce screened better on a risk-adjusted basis despite slower growth, with the analyst arguing its valuation and cash generation make it the safer enterprise AI bet.
A roughly 22 P/E for Salesforce contrasts with Palantir’s 139, while Salesforce also has $3.4 billion in combined AI and data ARR and FY27 revenue guidance of $45.9 billion to $46.2 billion.
Palantir’s latest quarter was far faster-growing—revenue up 92.83%, U.S. commercial revenue up 149%, and 73 deals worth at least $10 million—but the analyst said that performance leaves little room for execution missteps.
Salesforce’s AI push is centered on Agentforce, which reached $1.2 billion in ARR, up 205%, even as the company used a debt-funded $25 billion accelerated share repurchase that lifted noncurrent liabilities to $39.3 billion.
The next test is whether Palantir can keep U.S. commercial growth above 100% and whether Salesforce can turn Agentforce bookings into faster reported revenue in the second half of FY27.