Artificial intelligence (AI) is reshaping the software-as-as-service (SaaS) landscape, but five companies stand out as clear leaders: Palantir Technologies (PLTR 1.62%), GitLab (GTLB 2.73%), Salesforce (CRM 1.14%), ServiceNow (NOW 3.64%), and Adobe (ADBE 0.22%). Each is using AI in a different way, but all are seeing solid traction with their AI offerings.
Let's look at why all five of these stocks appear to be solid investment options over the long term.
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1. Palantir Technologies
Palantir has gone from polarizing to a powerhouse. Its revenue is not just growing quickly, it's accelerating. The first quarter marked the seventh straight quarter of accelerating revenue growth, up 39% year over year. U.S. commercial sales are leading the way, surging 71% last quarter, as customers embrace its Artificial Intelligence Platform (AIP). Meanwhile, its government business continues to see strong traction. U.S. government revenue jumped 45% last quarter, while the company also recently secured a large contract with NATO.
AIP is what makes Palantir special. The platform doesn't just gather and analyze data; it structures it into an "ontology" that links digital inputs to real-world assets. This allows its software to use AI to identify risks and provide real solutions. The company has also recently added AI agents to its platform to automatically act on those solutions.
Currently, AIP is being used by companies across a wide range of industries to help solve very different problems. This breadth of use cases is why Palantir has such a huge growth opportunity still in front of it.
2. GitLab
GitLab is at the heart of secure software development. Already a leader in DevSecOps (development, security, and operations), the company just launched GitLab 18, which includes over 30 enhancements to its platform, highlighted by its new GitLab Duo Agent Platform. This allows users to deploy AI agents across the entire software development life cycle, not just for code generation, but for tasks like testing, documentation, and compliance.
It's addressing a key pain point, as according to a recent William Blair survey, developers spend only about 20% of their time writing code, leaving huge room for productivity gains in the remaining 80%. The launch also brought new features in security and compliance, while GitLab expanded partnerships with Amazon and Anthropic, reinforcing its DevSecOps leadership.
GitLab has seen strong revenue growth, including 27% last quarter. Customers are expanding seats and upgrading to higher tiers as AI-driven development takes off. While some fear that AI might replace developers, GitLab is proving it can make them far more efficient, and that makes the company a long-term winner.
3. Salesforce
Salesforce is pushing to become a digital workforce leader with its Agentforce platform. Already the dominant player in customer relationship management software, it's using its huge installed base to launch a new AI agent ecosystem. With over 4,000 paying customers since its October launch, Agentforce is off to a strong start.
The company's strategy centers on unifying apps, data, automation, and metadata into a single framework called ADAM to power a digital labor force. It offers prebuilt agents and no-code tools through Agentforce so customers can build their own AI agents. It recently introduced a new flexible Agentforce consumption-based pricing model that is more aligned with outcomes in order to help increase adoption and improve customer satisfaction.
If Salesforce can become a digital workforce leader, the stock will have a lot of upside from here.
4. ServiceNow
ServiceNow is quietly becoming one of the most important AI software companies in the enterprise space. The strength of its platform has always been connecting siloed departments and helping organizations streamline their operations, but AI is helping take that to another level.
ServiceNow is helping companies digitize operations and cut costs, which is exactly what businesses need in today's uncertain macroenvironment. Its generative AI assistant, Now Assist, does this in several ways, including providing an AI chatbot to handle questions, a text-to-code generator, and a case summarization tool. While best known for its information technology (IT) management platform, it has broadened into other areas such as HR, customer service, and more through its Now Platform.
AI is already fueling growth, with Pro Plus deals, which include its AI solutions, quadrupling year over year in Q1. With the help of AI, it looks like the company has a huge opportunity ahead.
5. Adobe
Adobe isn't chasing AI, it's weaving it into everything it does. Its Firefly generative AI model allows users to create content from text prompts that they can further manipulate with Adobe's creative tools, such as Photoshop. Importantly, it also provides intellectual property protection, which is important for enterprises that want to avoid any potential lawsuits. The strategy is bringing in new users and keeping existing customers locked in.
But Adobe's AI push extends well beyond creative professionals. It's also embedding AI tools into its Document Cloud and Express solutions to help users create content, analyze documents, and even automate marketing. Acrobat and Express products hit 700 million monthly active users last quarter, and subscription revenue for this segment jumped 15%.
While it's not seeing explosive growth, Adobe is a solid AI compounder with a sticky customer base and expanding use cases.
