TLDR
- Salesforce secured a $5.6 billion U.S. Army contract through Computable Insights to deploy AI and cloud systems over 10 years.
- The deal provides Army access to Salesforce platforms, AI agents, and Slack to streamline military procurement and operations.
- This contract follows Salesforce’s September 2025 launch of Missionforce, its dedicated national security business unit.
- Analysts rate CRM as a Moderate Buy with a $327.40 average price target, representing 42.72% upside from current levels.
Salesforce scored its biggest government contract ever. The cloud software giant will receive $5.6 billion from the U.S. Army to upgrade military data infrastructure.
The deal runs for 10 years and was awarded to Computable Insights, Salesforce’s national security subsidiary. It’s an Indefinite Delivery, Indefinite Quantity agreement.
This structure allows the Army to adjust service levels based on operational needs. The contract dwarfs any previous Defense Department deal Salesforce has landed.
Army personnel will use Salesforce cloud tools, data platforms, and AI agents. Recruiters will access Slack for messaging and coordination.
The technology promises to reduce procurement cycles from months to single-digit days. It connects disparate data across personnel management, supply chains, and combat operations.
Salesforce describes the partnership as bringing “private sector innovation” to military infrastructure. The Army wants unified systems that enable faster decision-making under pressure.
Defense Business Expansion
Salesforce has been building its military presence methodically. Computable Insights won a $100 million Army contract in 2025.
That earlier deal proved Salesforce could handle classified work and meet security requirements. It created momentum for this much larger engagement.
The company formed Missionforce in September 2025. This unit targets intelligence agencies, national security clients, and defense departments.
Salesforce rolled out a Defense Department-certified Slack version in December. The secure platform meets stringent military communication standards.
These strategic moves position Salesforce as a serious contender in defense technology. The company is pivoting from pure enterprise software to critical government infrastructure.
Military Modernization Strategy
Defense Secretary Pete Hegseth made commercial software a top priority in March. The Pentagon wants off-the-shelf solutions instead of expensive custom builds.
The Department of Defense partnered with OpenAI, Anthropic, and xAI for AI capabilities. These companies provide autonomous agents for military applications.
Salesforce’s platforms will power generative and agentic AI across Army operations. These systems handle planning, logistics coordination, threat analysis, and tactical support.
Defense agencies are abandoning legacy systems for cloud-first architectures. Real-time data access has become essential for modern warfare.
The Army’s fragmented databases currently slow down critical processes. Salesforce will create a unified data layer spanning multiple military functions.
Market Reaction and Outlook
Analysts show bullish sentiment on Salesforce stock. Out of 39 Wall Street analysts, 29 rate CRM as a Buy.
Nine analysts recommend holding the stock, while one suggests selling. The consensus price target stands at $327.40.
That target implies 42.72% potential gains from current trading prices around $229. The defense contract adds predictable revenue for the next decade.
Government contracts typically provide stable cash flow with built-in growth mechanisms. This deal could attract other military branches to Salesforce platforms.
CEO Marc Benioff has supported select Trump administration initiatives. The company pitched its technology to Immigration and Customs Enforcement for recruitment operations.
The 10-year timeframe gives Salesforce extended revenue visibility. It also positions the company for follow-on contracts across other Pentagon divisions.
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