Salesforce Lands $1.6B Veterans Affairs Agreement as AI Adoption Accelerates

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Salesforce, Inc. (NYSE: CRM) shares are up during Friday's premarket session as the company has won a $1.6 billion contract from the U.S. Department of Veterans Affairs (VA) to enhance its services. This agreement is expected to leverage Salesforce's technology to streamline operations and improve care delivery for veterans, which could significantly impact the company's revenue and market position moving forward.

Wins $1.6 Billion VA Contract

The VA's contract is structured as a one-year Agentic Enterprise License Agreement (AELA) with options for two additional one-year renewals.

It aims to modernize care and service delivery for over 17 million veterans.

This partnership builds on a long-standing relationship and is designed to reduce administrative burdens, allowing VA employees to focus more on serving veterans effectively.

Commits $1 Billion to Switzerland to Accelerate Agentic AI Push

This month, Salesforce announced Tuesday that it will invest $1 billion in Switzerland over the next five years to accelerate the country's adoption of agentic artificial intelligence.

CEO Marc Benioff unveiled the investment ahead of the AI for Good Global Summit in Geneva. The funding will support Salesforce's local workforce, customers, partners and AI skills development across Switzerland.

CRM Technical Outlook: Trend, Momentum And Key Levels

Currently, Salesforce, Inc. is trading at $159.35, which places it about 3.4% below its 20-day simple moving average (SMA) of $164.65. The stock has been underperforming, with its 50-day SMA at $170.33, indicating a bearish trend as the 20-day SMA is below the 50-day SMA.

Momentum indicators show that the MACD is currently above its signal line, suggesting that downside pressure is easing, although the overall trend remains bearish. This indicates a potential for a reversal or stabilization in the near term, especially with the positive news surrounding the VA contract.

  • Key Resistance: $170.00 - a critical level where the stock has faced selling pressure in the past.
  • Key Support: $156.50 - a level where buyers previously stepped in, providing a safety net for the stock.
CRM Analyst Price Targets

The stock carries a Buy rating with an average price forecast of $238.43. Recent analyst moves include:

  • Morgan Stanley: Downgraded to Equal-Weight (Lowers Target to $185.00) (July 21)
  • CLSA: Initiated with Hold (Target $165.00) (July 20)
  • Evercore ISI Group: Outperform (Lowers Target to $250.00) (July 14)
How Salesforce (CRM) Ranks On Value, Growth And Momentum

Below is the Benzinga Edge scorecard for Salesforce, highlighting its strengths and weaknesses compared to the broader market:

  • Value: Weak (Score: 28.54) - Trading at a steep premium relative to peers.
  • Growth: Weak (Score: 13.04) - Limited growth indicators in current performance.
  • Quality: Weak (Score: 26.09) - Moderate quality metrics compared to industry standards.
  • Momentum: Weak (Score: 7.72) - Stock is underperforming the broader market.
The Verdict: Salesforce's Benzinga Edge signal reveals a weak profile across key pillars, indicating challenges in value, growth, and momentum. This suggests that while the company has potential, it may face headwinds in its current market environment.

ETFs With The Biggest Salesforce (CRM) Exposure

  • SmartETFs Advertising and Marketing Technology ETF (NYSE: MRAD): 4.11% Weight
  • iShares Expanded Tech-Software Sector ETF (NYSE: IGV): 4.86% Weight
  • First Trust Dow Jones Internet Index Fund (NYSE: FDN): 3.98% Weight
Significance: Because CRM carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

CRM Price Action: Salesforce shares were up 1.83% at $159.80 during premarket trading on Friday, according to Benzinga Pro data.