Informatica (INFA) AI Stock Analysis

• Market Cap: $8.38B
• Dividend Yield: N/A
• Average Volume (3M): 5.64M
• Price to Earnings (P/E): 5125.5
• Beta (1Y): 0.85
• Revenue Growth: 2.28%
• EPS Growth: N/A
• Country: US
• Employees: 5,200
• Sector: Technology
• Sector Strength: 79
• Industry: Software - Infrastructure
• EPS (TTM): 0.22
• Shares Outstanding: 259,396,760
• 10 Day Avg. Volume: 3,509,745
• 30 Day Avg. Volume: 5,643,230
• PEG Ratio: -5.37
• Price to Book (P/B): 6.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -303.71
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 4.73
• Enterprise Value/Ebitda: 4.69
• 1Y Price Target: $22.42
• Price Target Upside: -6.93% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 78 Outperform
• Price Target: $28.00 ▲(16.23%Upside)

The stock score is driven by robust financial performance, positive earnings call sentiment, and strong corporate events such as the merger with Salesforce. Technical analysis indicates bullish momentum but suggests caution due to overvaluation concerns. Overall, the strategic shift towards cloud and AI and significant corporate developments support a favorable investment outlook.

Positive Factors

Acquisition

INFA announced that the company had entered into a definitive agreement to be acquired by CRM for $25 per share, an 11% premium to where shares closed on Friday.

Product Development

Informatica introduced two new AI focused products, including agentic AI solutions and a tool for building AI experiences, which could drive higher consumption and Cloud ARR growth.

Strategic Partnerships

Informatica announced new products, platform enhancements, and deeper strategic partnerships, which should drive higher usage of its platform and durable growth of its key metric, Cloud ARR, over the long-term.

Negative Factors

Growth Momentum

Cloud NRR is slowing down to 120% from 124%, indicating a potential decline in growth momentum.

Renewal Execution

Investor concerns around execution issues in renewals at the end of FY24 have contributed to recent pressure on shares.

Revenue Growth

The headwinds from Informatica's legacy business model transition have limited their overall revenue growth to the low single digits.

Informatica Business Overview & Revenue Model

Company Description

Informatica (INFA) is a leading enterprise cloud data management company. It provides data integration products and services that enable businesses to harness the power of their data for analytics and decision-making. Informatica operates primarily in the technology and software sector, offering a broad range of solutions for data integration, data quality, data governance, master data management, and data security. Their cloud-native platform, Informatica Intelligent Data Management Cloud (IDMC), helps organizations manage and secure their data across diverse, multi-cloud environments.

How the Company Makes Money

Informatica makes money through the sale of software subscriptions, licensing, and support services. Its primary revenue streams include subscriptions to its cloud-based data management platform and related support services. The company also generates revenue from consulting services that help clients implement and optimize Informatica's solutions. Significant partnerships with major cloud providers, such as Amazon Web Services, Microsoft Azure, and Google Cloud, further contribute to its sales by integrating its services into these ecosystems. Informatica's business model focuses on expanding its customer base, renewing subscriptions, and upselling additional features and services to existing clients.

Informatica Financial Statement Overview

Summary

Informatica exhibits strong revenue growth and cash flow generation, supported by a robust balance sheet. While profitability metrics like ROE and net income show room for improvement, the overall financial health remains stable and supportive of strategic investments.

Income Statement

Informatica has demonstrated consistent revenue growth over the years, with a solid gross profit margin of 76.6% in TTM (Trailing-Twelve-Months). Despite a slight decline in net income, the net profit margin remains positive at 0.1%. The EBIT margin is modest at 9.6%, indicating room for operational improvements. Overall, strong revenue growth and profitability are highlights, with some challenges in net income stability.

Balance Sheet

The company's balance sheet shows a robust equity ratio of 44.7% in TTM, reflecting financial stability. The debt-to-equity ratio remains manageable at 0.82, though there is a slight increase in total debt. Return on equity is low at 0.1%, suggesting limited net income contribution to equity. Strengths include a solid equity base and manageable debt levels, while profitability on equity needs improvement.

Cash Flow

Informatica has a strong free cash flow generation, with a substantial free cash flow to net income ratio due to low net income levels. Operating cash flow has increased to $432.4 million in TTM, demonstrating effective cash generation. The free cash flow growth rate is positive, indicating efficient capital expenditure management. Overall, cash flow positions are strong, contributing to financial flexibility.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.50B	1.64B	1.60B	1.51B	1.44B	1.32B
	Gross Profit
1.16B	1.31B	1.26B	1.16B	1.11B	1.01B
	EBIT
26.16M	127.05M	33.56M	43.82M	87.56M	16.11M
	EBITDA
112.78M	338.52M	241.02M	258.41M	59.91M	273.18M
	Net Income Common Stockholders
-97.30M	9.93M	-125.28M	-53.67M	-99.93M	-167.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.25B	1.23B	992.27M	716.13M	496.42M	362.73M
	Total Assets
5.09B	5.28B	5.20B	4.97B	4.99B	5.07B
	Total Debt
1.86B	1.86B	1.89B	1.91B	1.93B	2.88B
	Net Debt
900.86M	948.15M	1.15B	1.42B	1.48B	2.54B
	Total Liabilities
2.81B	2.97B	2.99B	2.92B	3.00B	3.91B
	Stockholders Equity
2.28B	2.31B	2.21B	2.05B	1.98B	1.17B
Cash Flow		Free Cash Flow
199.80M	405.91M	259.80M	194.59M	217.87M	153.92M
	Operating Cash Flow
210.32M	409.85M	266.35M	200.06M	228.68M	167.75M
	Investing Cash Flow
-26.68M	-70.71M	-55.88M	-185.96M	-32.41M	-52.51M
	Financing Cash Flow
-41.05M	-146.21M	21.37M	40.89M	-86.37M	70.29M

Informatica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INFA, the sentiment is Positive. The current price of 24.09 is above the 20-day moving average (MA) of 22.83, above the 50-day MA of 20.02, and above the 200-day MA of 23.15, indicating a bullish trend. The MACD of 1.26 indicates Positive momentum. The RSI at 78.00 is Negative, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INFA.

Informatica Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFA	78 Outperform	$8.38B	5,125.53	0.09%	―	2.28%	―
SRAD	75 Outperform	$7.88B	114.93	6.40%	―	21.75%	116.24%
FOUR	74 Outperform	$8.27B	30.01	30.28%	―	27.39%	115.40%
CCCS	66 Neutral	$5.98B	628.87	0.46%	―	9.05%	―
S	64 Neutral	$5.97B	―	-26.98%	―	32.25%	20.56%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
GTLB	61 Neutral	$7.16B	438.42	2.53%	―	29.31%	―

Informatica Corporate Events

Informatica Announces Merger Agreement with Salesforce

On May 26, 2025, Informatica Inc. entered into a Merger Agreement with Salesforce, under which Informatica will become a wholly owned subsidiary of Salesforce. The merger has been approved by the boards of both companies and the majority of Informatica’s stockholders, with no further stockholder approval required. Informatica stockholders will receive $25.00 per share in cash for their Class A and B-1 common stocks. The merger is subject to customary closing conditions, including regulatory approvals, and is expected to enhance Salesforce’s market position by integrating Informatica’s technology and operations.

The most recent analyst rating on (INFA) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Informatica stock, see the INFA Stock Forecast page.

Salesforce to Acquire Informatica for $8 Billion

On May 27, 2025, Informatica Inc. and Salesforce announced a definitive agreement for Salesforce to acquire Informatica for approximately $8 billion. This acquisition aims to enhance Salesforce’s data foundation for deploying AI by integrating Informatica’s data management capabilities, creating a unified architecture for AI agents. The merger is expected to strengthen Salesforce’s position in the enterprise data market, with plans to integrate Informatica’s technology stack into Salesforce’s ecosystem, thereby accelerating AI-driven growth and delivering benefits across various sectors.

The most recent analyst rating on (INFA) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Informatica stock, see the INFA Stock Forecast page.

Informatica Reports Strong Q1 2025 Financial Results

Informatica reported strong financial results for the first quarter of 2025, with a notable 30% year-over-year growth in Cloud Subscription Annualized Recurring Revenue (ARR), reaching $848 million. The company’s strategic initiatives have led to significant growth in cloud workloads and increased usage of AI, demonstrating its robust position in the data management industry. Additionally, Informatica expanded its partnerships with Databricks and Google, enhancing its Intelligent Data Management Cloud services. The company also announced new product innovations to improve AI-ready data access and appointed a new chief product officer to drive future growth.