Salesforce Secures $5.6 Billion U.S. Army Contract
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Businesswire
- Contract Size: Salesforce has secured a $5.6 billion, 10-year IDIQ contract with the U.S. Army, executed through its wholly-owned subsidiary Computable Insights LLC, marking a significant expansion in the national security sector and likely enhancing its market position.
- Technical Support: The new contract will leverage Salesforce's cloud technologies and data fabric to support the Department of War's accelerated decision-making and operational optimization, improving support for millions of warfighters and their families, thereby enhancing overall combat effectiveness.
- Historical Collaboration: This contract builds on over a decade of collaboration between Salesforce and the U.S. Armed Forces, aiming to drive the Department of War's digital transformation through innovations in modernizing recruiting, training, and operational efficiency, ultimately improving mission execution outcomes.
- Financial Impact: While the financial implications of this contract will be realized as orders are placed, it is expected to positively contribute to Salesforce's financial performance, with detailed disclosures anticipated in the upcoming Q4 earnings call.
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: 229.400
Low
223.00
Averages
326.95
High
405.00
Current: 229.400
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.
