Latest news with #SalesforceInc
Bloomberg
4 days ago
- Business
- Bloomberg
IBM Said to Have Pursued Informatica Ahead of Salesforce Deal
International Business Machines Corp. pursued Informatica Inc. before Salesforce Inc. bought the software company for $8 billion last month, according to people familiar with the matter. IBM had held takeover talks in recent months with Informatica, the people said, asking not to be identified because the matter is private.
Bloomberg
4 days ago
- Business
- Bloomberg
Klarna Saved $2 Million After Cutting Ties With Salesforce
Klarna Group Plc Chief Executive Officer Sebastian Siemiatkowski said his company saved around $2 million after it severed ties with Salesforce Inc. in favor of data tools it built using artificial intelligence. Previously, data on Klarna's relationships with merchants was spread over multiple platforms owned by Salesforce as well as in emails, calendars, and cloud documents, Siemiatkowski said at the SXSW London conference. Now the fintech giant is in the process of consolidating the data in one place and will use AI to make better sense of it.
Bloomberg
4 days ago
- Business
- Bloomberg
Salesforce Patience and Ties Between CEOs Drove Informatica Acquisition
Salesforce Inc. 's agreement to buy Informatica Inc. for $8 billion came a year after initial talks collapsed and the acquisition target lost a third of its market value, lowering the price it was willing to accept for a deal. The result, according to Salesforce executives and other people close to the negotiations, is evidence of the software giant's more-disciplined approach to dealmaking after working several years to reduce costs and improve profitability. That patience was imposed by major shareholders who helped scuttle a purchase of Informatica in early 2024.
Yahoo
30-05-2025
- Business
- Yahoo
Salesforce (CRM) Shares Tumble Despite Q1 Beat, AI Deal Sparks Exit
May 30 - Shares of Salesforce (NYSE:CRM) slumped about 3.3% on Thursday despite topping fiscal first-quarter estimates and lifting its full-year outlook on AI tailwinds. The customer-relationship-management software maker reported adjusted EPS of $2.58, beating the $2.54 consensus, and revenue of $9.83 billion, up 8% year-on-year and above forecasts of $9.75 billion. For fiscal 2025, it now sees adjusted EPS of $11.27 to $11.33 and revenue of $41.0 billion to $41.3 billion, up from prior ranges of $11.09 to $11.17 and $40.5 billion to $40.9 billion. A day earlier, Salesforce said it would acquire data management firm Informatica for $8 billion, its largest deal since Slack, to bolster its AI and data-stack offerings. RBC Capital Markets downgraded the stock to sector perform from outperform, citing execution risks and possible distractions from its core business. Analysts noted a slight miss on remaining performance obligations growth, 30 basis points below expectations, and a modest operating-margin shortfall after several quarters of beats. Still, broad strength in AI-driven products underpins management's confidence in sustaining growth and margin expansion. Based on the one year price targets offered by 48 analysts, the average target price for Salesforce Inc is $362.12 with a high estimate of $442.00 and a low estimate of $225.00. The average target implies a upside of +35.67% from the current price of $266.92. Based on GuruFocus estimates, the estimated GF Value for Salesforce Inc in one year is $291.64, suggesting a upside of +9.26% from the current price of $266.92. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Salesforce's AI Push Grows With Informatica: Time to Hold the Stock?
Salesforce, Inc. CRM has made another big move in its artificial intelligence (AI) journey by agreeing to buy data management company Informatica Inc. INFA for around $8 billion. The deal, announced as an all-cash transaction, aims to strengthen Salesforce's capabilities in data handling and AI integration. As Salesforce continues to position itself as a leader in enterprise AI, this deal, which is expected to close in early 2027, could play a key role. With this bold strategic step that could strengthen Salesforce's long-term value proposition, investors must be wondering if they should hold onto CRM stock now. Informatica is known for its powerful data tools, including data integration, governance, quality and metadata management. These capabilities will help Salesforce improve its AI platform, Agentforce, and its Data Cloud product. Salesforce says this deal will help build a solid data foundation for AI, especially autonomous AI agents, which need clear, trusted and well-managed data to function properly. Marc Benioff, CEO of Salesforce, said the acquisition will create the most complete data platform for AI in the industry. Combining Informatica's tools with Salesforce's software, including MuleSoft and Tableau, will help customers make better use of their data and AI solutions. From a product standpoint, the acquisition makes sense. Informatica brings features that Salesforce needs to support advanced AI capabilities. For example, AI agents will now be able to better understand the context, quality and origin of data. This helps ensure responsible and reliable AI-driven decisions. The enhanced capabilities will also help Salesforce's key competitors in the enterprise software space, including SAP SE SAP and Microsoft Corporation MSFT. Salesforce Inc. price-consensus-chart | Salesforce Inc. Quote Financially, the deal seems well-structured. It will be funded with Salesforce's cash and new debt. The company expects it to be accretive to non-GAAP earnings and free cash flow starting in the second year. In other words, while it's a large acquisition, Salesforce doesn't expect it to hurt profits or cash in the long run. Most importantly, the deal doesn't derail Salesforce's financial discipline. The company has been focused on improving margins and returning capital to shareholders. This acquisition fits within that broader strategy, aiming for long-term gains without losing its near-term focus. Moreover, the acquisition will give a fresh boost to Salesforce's top-line growth, which has been witnessing a decelerating trend over the past year. Revenue growth has decelerated from its historical double-digit pace to single-digit increases in recent quarters. This slowdown reflects cautious enterprise spending amid macroeconomic uncertainties and geopolitical issues. The Zacks Consensus Estimate for revenues indicates that this trend will persist, with mid-to-high single-digit growth expected for fiscal 2026 and 2027. The slowing growth trend has weighed on investor sentiment. Shares of the company have plunged 17.1% year to date (YTD), underperforming the Zacks Computer – Software industry, which has risen 4.3%. CRM stock has also underperformed other enterprise software companies, including SAP and Microsoft. YTD, shares of SAP and Microsoft have rallied 21.9% and 9.2%, respectively. Salesforce's acquisition of Informatica reinforces its long-term AI vision despite current stock pressures. The deal enhances data infrastructure, which is critical for AI growth. Though near-term revenue trends are soft, Informatica's acquisition positions Salesforce for stronger innovation and competitiveness. Considering the factors, it is prudent for investors to continue holding CRM stock and watch for future upside. Salesforce carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report Informatica Inc. (INFA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
