Salesforce has landed one of its biggest government contracts ever. The cloud software company will receive $5.6 billion from the U.S. Army to overhaul military data systems and push AI adoption across defense operations.
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Army just awarded Salesforce $CRM a $5.6 Billion contract over 10 years
The military will get access to tools like Slack with the goal of speeding up antiquated and outdated practices – WSJ pic.twitter.com/Ldann5XA9t
— Evan (@StockMKTNewz) January 27, 2026
The deal was awarded to Computable Insights, a Salesforce subsidiary focused on national security work. It’s structured as an Indefinite Delivery, Indefinite Quantity agreement spanning up to 10 years.
This allows the Army to scale services as needed. The contract represents Salesforce’s largest Defense Department award by far.
The Army will use Salesforce’s cloud infrastructure, data management tools, and AI agents. Army recruiters will get access to Slack, the company’s messaging platform.
Salesforce says the technology will cut procurement timelines from months to days. The goal is to unify fragmented data across personnel, logistics, and operations.
This isn’t Salesforce’s first rodeo with the military. Computable Insights won a $100 million contract in 2025 to provide similar services.
That deal laid the foundation for this much larger agreement. The relationship has been building steadily over the past year.
The Army contract fits into a broader Pentagon strategy. Defense Secretary Pete Hegseth issued a memo in March making commercial software purchases a top priority.
The Department of Defense has signed deals with OpenAI, Anthropic, and xAI. These partnerships aim to bring AI agents to military personnel across various functions.
Salesforce launched Missionforce in September 2025. The dedicated business unit targets national security, intelligence, and defense clients specifically.
In December, the company rolled out a version of Slack meeting strict Defense Department security standards. These moves show Salesforce is serious about the defense market.
Analysts on Wall Street are mostly bullish on Salesforce stock. The company has a Moderate Buy consensus rating based on recent analyst coverage.
Out of 39 analysts, 29 rate it a Buy, nine say Hold, and one recommends Sell. The average price target sits at $327.40.
That target implies 42.72% upside from current levels. The stock trades around $229 as of the contract announcement.
The defense contract could shift investor perception of Salesforce’s growth trajectory. Government deals typically offer stable, long-term revenue streams.
Salesforce CEO Marc Benioff has expressed support for certain Trump administration priorities. The company has pitched Immigration and Customs Enforcement on using its services for agent recruitment.
The timing aligns with the Pentagon’s push into generative and agentic AI. These systems assist with planning, logistics, threat detection, and battlefield decisions.
Defense agencies are adopting cloud-first strategies and real-time data platforms. Salesforce is positioning itself as a critical infrastructure provider for military modernization.
The 10-year contract structure provides revenue visibility well into the next decade. It also opens doors for additional Defense Department work across other military branches.
Salesforce said the deal brings “the best of private sector innovation” to support the Pentagon. The company aims to enable “a more efficient and effective force” through its technology stack.
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Also read: Zoom (ZM) Stock: Anthropic Investment Valued at Up to $4 Billion
