New York, January 28, 2026, 12:22 EST — Regular session
- Salesforce shares gained roughly 0.3% by midday following news of a new contract with the U.S. Army
- The deal sets a $5.6 billion limit across 10 years, though actual spending hinges on future orders.
- Attention now turns to the upcoming earnings call for insights on revenue timing and guidance
Salesforce shares edged up 0.3% to $229.28 by midday Wednesday, bouncing back after an earlier dip. The stock fluctuated between $227.10 and $231.83 during the session.
The modest shift comes after investors keyed in on a fresh U.S. Army contract that brought the software maker back onto the defense-tech radar. Traders are focused less on the headline number and more on whether it signals a stream of ongoing orders.
The timing is tricky for major software firms, as buyers tend to shrug off positive news when the benefits seem far off. Investors are focusing heavily on contract wins and backlog figures, using them as a stand-in for actual demand while customers tighten their budgets.
Salesforce announced Monday that the U.S. Army has awarded it a $5.6 billion, 10-year IDIQ contract—a setup allowing the Army to issue task orders over time instead of committing to a fixed purchase upfront. The deal is routed through Computable Insights LLC, Salesforce’s fully owned national security division. Importantly, the $5.6 billion represents the contract ceiling, not a guaranteed spending amount. (Salesforce Investor Relations)
Kendall Collins, CEO of Salesforce’s Missionforce and Government Cloud unit, said the project aims to “streamline operations” and “increase readiness,” covering everything from recruiting to field deployment. TechRepublic pointed out the deal might also broaden access to tools like Slack, tying into wider modernization plans. (TechRepublic)
Alan Webber, program vice president at IDC, described the switch to an IDIQ vehicle as a “shift from buying software to orchestrating outcomes at scale,” according to Washington Technology. (Washington Technology)
Salesforce shares jumped roughly 2% in Tuesday’s premarket session following the announcement, Reuters reported on TradingView. Since then, gains have softened, with trading turning choppier as investors hold out for clearer financial details. (TradingView)
Salesforce outpaced several big software rivals on Wednesday. Microsoft dipped around 0.2%, ServiceNow dropped close to 0.7%, and Oracle slid about 1.7% by midday.
Salesforce is ramping up its defense sector efforts, positioning data integration as the foundation for broader automation. Peter Lington, a Salesforce VP overseeing the Defense Department account, told DefenseScoop: “We’ve got to have trust in our data first and foremost,” emphasizing that this trust is essential before AI agents—software acting autonomously on users’ behalf—can move beyond simply answering questions. (DefenseScoop)
But contract ceilings can paint an overly rosy picture in the short term. IDIQ awards often take a while to turn into actual revenue, with the pace hinging on budgets, procurement processes, and how quickly the customer issues orders.
Software valuations could be especially influenced by the overall market this time. Investors were on edge ahead of a Federal Reserve policy announcement, watching closely for any hints about interest rate changes. (Investopedia)
Next up: earnings. Salesforce is set to report fourth-quarter results on Feb. 25, with the conference call kicking off at 7:00 a.m. ET, ahead of the market open. Investors will be focused on details around order timing and whether the Army contract makes an appearance in the guidance. (Marketbeat)
