Salesforce rises on 10-year contract with US Army, potentially worth up to $5.6 billion
Only a few months after formally launching its defense unit, Salesforce has become the latest beneficiary of the Pentagon’s desire for more streamlined software.
The stock is up more than 2% in premarket trading on Tuesday after the company announced that Computable Insights, its subsidiary focused on US intelligence and national security, had signed a deal potentially worth up to $5.6 billion with the US Army to provide its AI, customer relationship management, and data analytics capabilities.
Per the press release, the announced 10-year indefinite delivery/indefinite quantity contract — agreements that offer an unspecified amount of services over a fixed period — will consist of a five-year base ordering period and a five-year optional ordering period with a $5.6 billion ceiling. The company noted that it is not a guaranteed purchase amount.
In the words of Kendall Collins, CEO of Salesforce’s Missionforce and Government Cloud unit: “This new contract, which builds on more than a decade-long relationship between Salesforce and the U.S. Armed Forces, will operationalize Missionforce across the Army and DOW, delivering trusted data and seamless interoperability, and supporting the DOW’s transformation into an agentic enterprise.”
The cloud software provider doubled down on its defense business after Defense Secretary Pete Hegseth made implementing modern commercial systems a priority in a March note, debuting the new security-focused business unit Missionforce in September and launching a version of popular messaging app Slack with security levels in line with Defense Department standards.
