Salesforce Inc. (NYSE:CRM) announced late Monday that it has secured a potential $5.6 billion, 10-year Indefinite Delivery Indefinite Quantity contract from the U.S. Army, sending shares higher as investors digested the scale of the agreement and its long-term implications for government revenue growth.
The U.S. Army issued the award through Computable Insights LLC, a wholly owned Salesforce subsidiary focused on national security programs. The IDIQ structure means revenue is not guaranteed and will depend on task orders over time.
The Army plans to use Salesforce's compliant cloud and "trusted data" capabilities to connect fragmented systems, speed decision-making, and improve workflows spanning personnel, logistics, readiness management, and case resolution.
Salesforce said the arrangement is designed to shorten procurement cycles, allow technology capacity to scale quickly, and bring more predictable pricing to large deployments, potentially improving efficiency across millions of service members, civilians, partners, and families.
Salesforce highlighted prior Army work, including modernization at the Army Human Resource Command and ongoing deployment of AI-enabled CRM tools intended to support thousands of employees and soldiers, while expanding self-service options for a broader user base.
Salesforce said it will discuss the contract's contribution to results on its fourth-quarter earnings call, noting that IDIQ economics differ from standard customer agreements because the financial impact is realized as orders are placed.
A separate technical read flagged that CRM stock is showing weakening price trends even as operational quality remains strong, a split that can keep near-term trading choppy despite headline wins.
CRM Price Action: Salesforce shares were up 1.79% at $233.50 during premarket trading on Tuesday, according to Benzinga Pro data.
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