Informatica (INFA) AI Stock Analysis

• Market Cap: $8.57B
• Dividend Yield: N/A
• Average Volume (3M): 5.40M
• Price to Earnings (P/E): 5231.9
• Beta (1Y): 0.78
• Revenue Growth: 2.28%
• EPS Growth: N/A
• Country: US
• Employees: 5,200
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): 0.22
• Shares Outstanding: 260,594,360
• 10 Day Avg. Volume: 8,752,162
• 30 Day Avg. Volume: 5,399,207
• PEG Ratio: -46.82
• Price to Book (P/B): 3.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.84
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: 7.37
• Enterprise Value/Ebitda: 7.31
• 1Y Price Target: $22.62
• Price Target Upside: -8.01% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 78 Outperform
• Price Target: $28.00 ▲(13.87%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

The acquisition of Informatica by Salesforce is seen as a favorable outcome for Informatica shareholders as the company continues to work through its business model and cloud transition.

Product Innovation

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

The company announced a number of expanded partnerships with key data/infrastructure players, including AWS, Databricks, Microsoft, Oracle, and Salesforce.

Negative Factors

Cloud Growth Concerns

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

Execution Risks

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

Revenue Growth Challenges

The overall revenue growth for Informatica has been limited to low single digits due to headwinds from their legacy business model transition.

Informatica Business Overview & Revenue Model

Company Description

Informatica Inc. develops an artificial intelligence-powered platform that connects, manages, and unifies data across multi-cloud, hybrid systems at enterprise scale in the United States. The company's platform includes a suite of interoperable data management products, including data integration products to ingest, transform, and integrate data; API and application integration products that enable users to create and manage APIs and integration processes for app-to-app synchronization, business process orchestration, B2B partner management, application development, and API management; data quality products to profile, cleanse, standardize, and enrich data to deliver accurate, complete, and consistent data sets for analytics, data science, governance, and other initiatives; and master data management products to create an authoritative single source of truth of business-critical data to reduce data related errors and remove redundancies. Its platform also includes customer and business 360 products to create, visualize, and browse comprehensive 360-degree views of business-critical data; data catalog products that enables customers to quickly find, access, and understand enterprise data using a simple Google-like search experience; and governance and privacy products that help users govern data, enable compliance with regulatory and corporate policies, and drive broader data consumption. The company also offers maintenance and professional services. Informatica Inc. was founded in 1993 and is headquartered in Redwood City, California.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.64B	1.60B	1.51B	1.44B	1.32B
Gross Profit	1.31B	1.26B	1.16B	1.11B	1.01B
EBITDA	338.52M	241.02M	258.41M	59.91M	273.18M
Net Income	9.93M	-125.28M	-53.67M	-99.93M	-167.89M
Balance Sheet
Total Assets	5.28B	5.20B	4.97B	4.99B	5.07B
Cash, Cash Equivalents and Short-Term Investments	1.23B	992.27M	716.13M	496.42M	362.73M
Total Debt	1.86B	1.89B	1.91B	1.93B	2.88B
Total Liabilities	2.97B	2.99B	2.92B	3.00B	3.91B
Stockholders Equity	2.31B	2.21B	2.05B	1.98B	1.17B
Cash Flow
Free Cash Flow	405.91M	259.80M	194.59M	217.87M	153.92M
Operating Cash Flow	409.85M	266.35M	200.06M	228.68M	167.75M
Investing Cash Flow	-70.71M	-55.88M	-185.96M	-32.41M	-52.51M
Financing Cash Flow	-146.21M	21.37M	40.89M	-86.37M	70.29M

Informatica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

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 24.59 is above the 20-day moving average (MA) of 24.40, above the 50-day MA of 23.44, and above the 200-day MA of 23.07, indicating a bullish trend. The MACD of 0.30 indicates Positive momentum. The RSI at 71.58 is Negative, neither overbought nor oversold. The STOCH value of 87.03 is Negative, 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
FOUR	79 Outperform	$9.17B	35.44	30.28%	―	27.39%	115.40%
INFA	78 Outperform	$8.57B	5,231.91	0.09%	―	2.28%	―
DOX	74 Outperform	$9.83B	18.78	15.45%	2.28%	-4.37%	7.18%
DBX	67 Neutral	$7.86B	18.34	-60.11%	―	0.79%	0.59%
CFLT	66 Neutral	$9.05B	―	-34.18%	―	24.11%	21.87%
KVYO	65 Neutral	$9.04B	―	-4.73%	―	33.95%	87.03%
Sector *	57 Neutral	HK$14.57B	5.76	-5.77%	4.75%	9.65%	-43.80%

Informatica Corporate Events

Informatica Elects New Directors at Annual Meeting

On June 18, 2025, Informatica held its annual meeting of stockholders to address key governance and operational matters. The meeting resulted in the election of Amit Walia, Bruce Chizen, and Mitesh Dhruv as Class I directors, the ratification of Ernst & Young LLP as the independent registered public accounting firm for 2025, and the approval of executive compensation on an advisory basis. These decisions reflect the company’s ongoing commitment to strong leadership and financial oversight.

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 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.