Salesforce Secures $5.6 Billion U.S. Army Contract
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 27 2026
0mins
Should l Buy CRM?
Source: Businesswire
Salesforce Inc. is experiencing a decline of 3.95% in pre-market trading, hitting a 52-week low amid broader market strength with the Nasdaq-100 and S&P 500 both up slightly.
The decline comes despite Salesforce securing a significant $5.6 billion, 10-year IDIQ contract with the U.S. Army through its subsidiary Computable Insights LLC. This contract is expected to enhance Salesforce's market position and financial performance, although the financial impact will be realized as orders are placed. The deal builds on over a decade of collaboration with the U.S. Armed Forces, aiming to drive digital transformation in military operations.
This contract could provide Salesforce with a substantial revenue stream in the future, but the current market sentiment remains cautious, particularly in the software sector, which has seen a general decline. Investors are closely monitoring the implications of this contract on Salesforce's upcoming earnings report.
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Analyst Views on CRM
Wall Street analysts forecast CRM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRM is 326.95 USD with a low forecast of 223.00 USD and a high forecast of 405.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
42 Analyst Rating
31 Buy
10 Hold
1 Sell
Moderate Buy
Current: 189.970
Low
223.00
Averages
326.95
High
405.00
Current: 189.970
Low
223.00
Averages
326.95
High
405.00
About CRM
Salesforce, Inc. is a provider of customer relationship management (CRM) technology. The Company helps organizations of any size reimagine their business for the world of artificial intelligence (AI). With Agentforce, its platform, organizations can bring humans together with AI agents to drive customer success on one deeply unified platform. With the Salesforce platform, it delivers a single source of truth, connecting customer data with integrated AI across systems, apps and devices to help companies sell, service, market and conduct commerce from anywhere. Agentforce is a new layer of the Salesforce platform that enables companies to build and deploy AI agents that can respond to inputs, make decisions and take action autonomously across business functions. Agentforce includes a suite of customizable agents for use across sales, service, marketing and commerce. Datablazer is a data-driven innovator, which leverages the Company’s platform to unlock insights and drive decisions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Historic Decline: Ives noted that in his 25 years of experience, he has never witnessed such a structural selloff, with software companies being perceived as lacking space in the AI age, reflecting a significant drop in market confidence that could result in a loss of about 5% of customers.
- AI Impact Analysis: While Ives acknowledged that AI disrupts the software industry, he argued that considering software as obsolete is an extreme view, citing Palantir as an example of how software can still thrive in the AI era, demonstrating that there is still room for software to succeed.
- Market Reaction: The stock prices of Microsoft, Salesforce, and ServiceNow have dropped 16.75%, 25.87%, and 30.47% respectively over the past month, indicating a pessimistic outlook from investors regarding the future prospects of these companies and reflecting a waning confidence in the software sector.
See More
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- AI Fatigue Emerges: As investor optimism around artificial intelligence wanes, tech stocks have continued to decline over the past three months, with the Russell 1000 Value index up 8.4% while the tech-heavy Russell 1000 Growth index is down 3.7%, reflecting a shift in market preference towards value stocks.
- Microsoft's Earnings Fail to Boost Stock: Despite Microsoft beating Wall Street expectations in its earnings report, concerns over slowing cloud revenue led to an 11% drop in its stock on the day of the announcement, marking the largest single-day decline since March 2020 and highlighting the fragile confidence in tech stocks.
- Software Industry Challenges: With the rapid advancement of AI technology, there are concerns that AI could replace many software providers at lower costs, resulting in the IGV Software index dropping nearly a third from its September high, signaling intensified competition within the industry.
See More
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- AI Fatigue: As investor optimism around artificial intelligence wanes, tech stocks have seen a three-month decline, with the Russell 1000 Value index up 8.4% while the tech-heavy Russell 1000 Growth index is down 3.7%, reflecting a shift in market preference towards value stocks.
- Microsoft's Earnings Fail to Boost Stock: Despite Microsoft exceeding Wall Street expectations in its earnings report, its stock plummeted 11% in one day due to slowing cloud revenue, marking the largest single-day drop since March 2020 and highlighting concerns about the future performance of tech stocks.
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