Salesforce Inc. (NYSE:CRM) stock gained nearly 7% on Monday, extending gains after the company announced Friday that it had secured a $1.6 billion U.S. Department of Veterans Affairs contract.
The rally came despite weakness across the broader technology sector. The Technology sector fell 1.8%, the S&P 500 slipped 0.3%, and the Nasdaq was down 0.9%. The Dow Jones Industrial Average, however, edged 0.2% higher.
Salesforce Lands $1.6 Billion VA Contract
Salesforce said Friday that the U.S. Department of Veterans Affairs awarded the company, through its distribution network, a $1.6 billion, three-year Agentic Enterprise License Agreement.
The deal expands Salesforce’s decade-long relationship with the VA and will deploy agentic AI, Slack, MuleSoft, Data 360 and Tableau to modernize veteran care, improve care coordination and streamline benefits delivery for more than 17 million veterans.
Technical Picture Improves
Monday’s rally pushed Salesforce above its 20-day and 50-day simple moving averages, signaling improving short-term momentum. However, the stock remains below its 100-day and 200-day moving averages, indicating the longer-term trend is still under pressure.
The MACD remains above its signal line with a positive histogram, suggesting selling pressure has eased.
The next resistance level sits near $175.50, close to the 100-day moving average. Initial support is around $156.50, which aligns with a recent buying zone.
Earnings And Analyst Outlook
Salesforce is expected to report fiscal second-quarter results on Sept. 2. Analysts expect earnings of $3.09 per share, up from $2.91 a year earlier, on revenue of $11.31 billion, compared with $10.24 billion last year.
The stock carries a consensus Buy rating with an average analyst price forecast of $238.43. Recent analyst actions include a downgrade to Equal-Weight from Morgan Stanley on July 21 with a price forecast of $185, a Hold initiation from CLSA on July 20 with a $165 price forecast, and an Outperform rating from Evercore ISI Group on July 14 with a reduced price forecast of $250.
CRM Stock Price Activity: Salesforce shares were up 6.88% at $174.92 at the time of publication on Monday, according to Benzinga Pro data.
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