New York, January 27, 2026, 13:17 (EST) — Regular session
Salesforce (CRM) shares slipped 0.4% to $228.39 on Tuesday, pulling back from earlier gains following reports of a possible $5.6 billion contract with the U.S. Army. The wider market showed a mixed picture, with the S&P 500 edging higher, the Dow dipping, and tech stocks holding steady. 1
The Army has handed the company a 10-year indefinite-delivery/indefinite-quantity contract capped at $5.6 billion — allowing the government to place orders as needed without guaranteeing the full sum will be used. Salesforce said this work will be carried out through Computable Insights LLC, its national security arm, and aims to broaden its Missionforce initiative throughout the military. Kendall Collins, CEO of Missionforce and Government Cloud, described the deal as a way to “operationalize Missionforce across the Army,” while IDC’s Alan Webber viewed it as a step toward “orchestrating outcomes at scale.” 2
The award arrives as investors push big software firms to prove new AI features can boost sales quickly enough to justify their spending. In December, Salesforce raised its full-year fiscal 2026 revenue forecast, revealing that Agentforce and Data 360 are hitting nearly $1.4 billion in annual recurring revenue — a subscription run-rate metric. 3
DefenseScoop reported that the Army contract features a five-year base ordering period with an additional five-year option. Salesforce has been ramping up its defense sector efforts since launching Missionforce last year. In a December interview cited by the outlet, Salesforce vice president Peter Lington emphasized, “We’ve got to have trust in our data first and foremost,” calling data readiness essential for broader AI agent deployment. 4
Salesforce featured in a separate Monday announcement as Lockheed Martin, PG&E, and Wells Fargo unveiled EMBERPOINT, a new venture focused on wildfire detection and response leveraging AI and autonomous tech. According to the release, Salesforce will supply the digital layer to integrate data and coordination, including Agentforce and Slack. 5
Big government awards can shake stocks at first glance, but cash flow usually arrives in fits and starts as agencies roll out task orders—the smaller work assignments within a larger contract. Traders will focus on early signals of consistent ordering, not just the headline contract value.
That Army contract’s ceiling doesn’t guarantee spending, especially as procurement priorities can pivot with changing budgets and political winds. Costs could also balloon—compliance demands, custom work, and tight delivery schedules might squeeze margins if the commercial side weakens simultaneously.
Next on the calendar is earnings. Salesforce is slated to report around Feb. 25, although the company hasn’t officially confirmed the date. Investors will be keen to see if there’s any indication of when Army contracts will start reflecting in future revenue. 6
