TLDR
- Salesforce won a $5.6 billion, 10-year U.S. Army contract through its Computable Insights unit to modernize military data and AI infrastructure.
- The Army will deploy Salesforce cloud platforms, AI agents, and Slack to cut procurement times and improve operational efficiency.
- The deal builds on a $100 million 2025 contract and follows the creation of Missionforce, Salesforce’s defense-focused division.
- Wall Street analysts give CRM a Moderate Buy rating with an average target of $327.40, implying 42.72% upside potential.
Salesforce just closed its largest government deal in company history. The U.S. Army awarded Computable Insights, a Salesforce subsidiary, a $5.6 billion contract.
The 10-year agreement will transform how the military manages data and deploys AI technology. It’s structured as an Indefinite Delivery, Indefinite Quantity contract.
This format gives the Army flexibility to scale usage based on evolving needs. The deal represents Salesforce’s biggest step into defense contracting.
Military personnel will access Salesforce cloud infrastructure, data management tools, and AI agents. Army recruiters will use Slack for communication and coordination.
The platform aims to compress procurement timelines from months down to days. It will integrate siloed databases covering personnel, equipment, logistics, and operations.
Salesforce says the technology brings “private sector innovation” to Pentagon operations. The Army seeks unified systems that accelerate decision-making in high-pressure environments.
Growing Defense Footprint
Salesforce has been steadily expanding its military business. Computable Insights secured a $100 million Army contract in 2025.
That initial agreement demonstrated Salesforce’s ability to handle sensitive military work. It established credibility that led to this much larger opportunity.
The company launched Missionforce in September 2025. This dedicated unit serves intelligence agencies, national security organizations, and defense clients.
Salesforce introduced a Defense Department-approved Slack version in December. The secure messaging tool complies with strict military cybersecurity standards.
These calculated moves show Salesforce is committed to becoming a key defense technology provider. The company is expanding beyond traditional enterprise software into critical government systems.
Pentagon Technology Shift
Defense Secretary Pete Hegseth prioritized commercial software purchases in a March directive. The Pentagon wants ready-made solutions rather than costly custom development.
The Department of Defense established partnerships with OpenAI, Anthropic, and xAI. These firms supply AI agents for various military applications and operations.
Salesforce’s infrastructure will support generative and agentic AI throughout Army operations. These systems manage planning, logistics, threat detection, and tactical decision support.
Military branches are replacing outdated legacy systems with modern cloud platforms. Instant data access has become critical for contemporary defense operations.
The Army currently operates fragmented databases that create operational bottlenecks. Salesforce will build a cohesive data foundation across multiple military domains.
The technology enables real-time information sharing between field units and command centers. Faster data flow translates to quicker responses during missions.
Stock Performance and Projections
Wall Street maintains a positive outlook on Salesforce. Among 39 analysts covering the stock, 29 recommend buying CRM.
Nine analysts suggest holding current positions, while one advises selling. The consensus price target sits at $327.40 per share.
That projection indicates 42.72% potential upside from trading levels near $229. The defense contract provides steady revenue for a full decade.
Government agreements typically deliver reliable income with predictable expansion clauses. This contract could lead other military branches to adopt Salesforce solutions.
CEO Marc Benioff has expressed alignment with certain Trump administration goals. Salesforce offered its recruitment technology to Immigration and Customs Enforcement.
The 10-year contract duration offers exceptional revenue predictability. It positions Salesforce for additional Pentagon contracts across different defense sectors.
