Salesforce Secures $5.6 Billion Military Contract

Written by Emily J. Thompson, Senior Investment Analyst

CRM+0.59%

Source: stocktwits

Updated: 1h ago

0mins

Source: stocktwits

Contract Size: Salesforce has secured a $5.6 billion, 10-year contract with the U.S. military, marking its largest defense contract to date, which is expected to significantly enhance the company's market position in the defense sector.
Technology Deployment: The contract will be implemented through Salesforce's wholly-owned subsidiary, Computable Insights, aiming to leverage cloud technology to accelerate decision-making, improve operations, and better support military personnel, thereby enhancing overall combat efficiency.
Market Reaction: Following the contract announcement, Salesforce's stock rose 1.5% in after-hours trading, despite a more than 13% decline in share price this year, indicating a positive market response to the new contract.
Industry Context: Amid a broad sell-off in the software sector, Salesforce's AI agent strategy has yet to gain strong traction, as clients remain cautious about costs and data readiness, which may impact its future growth potential.

CRM

$229.4+Infinity%1D

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: 228.050

Low

223.00

Averages

326.95

High

405.00

Current: 228.050

Low

223.00

Averages

326.95

High

405.00

RBC Capital

Rishi Jaluria

Sector Perform

maintain

$250 -> $290

2026-01-05

Reason

RBC Capital

Rishi Jaluria

Price Target

$250 -> $290

AI Analysis

2026-01-05

maintain

Sector Perform

Reason

RBC Capital analyst Rishi Jaluria raised the firm's price target on Salesforce to $290 from $250 and keeps a Sector Perform rating on the shares. 2026 is likely to be a year when AI tailwinds become more evident for companies well positioned for enterprise AI adoption, while less prepared peers may remain pressured by the "AI is the death of software" narrative, the analyst tells investors in a research note. Enterprise spending appears to be stabilizing and improving in select areas, with GenAI driving innovation even as management teams remain conservative in early 2026 guidance, the firm says.

RBC Capital

Sector Perform

maintain

$250 -> $290

2026-01-05

Reason

RBC Capital

Price Target

$250 -> $290

2026-01-05

maintain

Sector Perform

Reason

RBC Capital raised the firm's price target on Salesforce to $290 from $250 and keeps a Sector Perform rating on the shares. 2026 is likely to be a year when AI tailwinds become more evident for companies well positioned for enterprise AI adoption, while less prepared peers may remain pressured by the "AI is the death of software" narrative, the analyst tells investors in a research note. Enterprise spending appears to be stabilizing and improving in select areas, with GenAI driving innovation even as management teams remain conservative in early 2026 guidance, the firm says.

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Barron's

Al Root and Jacob Sonenshine

maintain

2025-12-24

Reason

Barron's

Al Root and Jacob Sonenshine

Price Target

2025-12-24

maintain

Reason

The software sector has been whipsawed over the past few years, but Salesforce can rally as AI fears fade and the company's management demonstrates commitment to improving profitability, Barron's Al Root and Jacob Sonenshine write in the publication's Stock Picks column. Last year, the stock had traded at 9-times expected forward sales, but Salesforce valuation currently stands at under six-times expected 2026 after a 30% pullback from all-time highs, the report states. Investors pricing in a "CRM demise" is too bearish, with Agentforce gaining traction as seen in its 330% annual recurring revenue growth reported in the latest Q3 numbers, Barron's writes.

BTIG

Allan Verkhovski

initiated

$335

2025-12-16

Reason

BTIG

Allan Verkhovski

Price Target

$335

2025-12-16

initiated

Reason

BTIG analyst Allan Verkhovski initiated coverage of Salesforce with a Buy rating and $335 price target.

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.