Salesforce (CRM) stock rose about 1.5% in Friday’s pre-market trading after a major new win. The company secured a $1.6 billion contract with the U.S. Department of Veterans Affairs (VA). Salesforce will help the VA improve its care and services using its data, cloud, and AI tools.
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For context, Salesforce is a major cloud software company. Its tools help businesses and government agencies manage customer data, sales, and other tasks.
Salesforce Adds Another Major U.S. Contract
The agreement was secured through Missionforce, which serves U.S. agencies. It runs for one year, with options for two more years.
Under the plan, the VA will use Salesforce’s tools to update its systems and improve how it serves veterans.
The latest award follows other large wins for Missionforce. These include a $5.6 billion U.S. Army contract and a $72 million Air Force deal. The new VA award could help Salesforce grow its federal business at a time when investors want to see more gains from its AI push.
CRM Stock Price Performance
Salesforce stock has been under pressure in recent weeks and has traded close to its 52-week low. The stock has lost 40% so far this year. A recent Morgan Stanley downgrade also weighed on sentiment. The firm’s analyst Adam Wood cut CRM to Equal Weight, citing slower-than-expected growth from Agentforce, Salesforce’s AI agent platform for businesses. He wants to see clearer signs that the platform can help boost sales growth.
Still, the $1.6 billion VA deal is a positive sign for Salesforce. It shows that demand for the company’s software and AI tools remains strong.
Is CRM a Buy, Sell, or Hold?
Turning to Wall Street, CRM stock has a Moderate Buy consensus rating based on 26 Buys, nine Holds, and two Sells assigned in the last three months. The average Salesforce stock price target of $237.03 implies a 51% upside potential.
