Salesforce (CRM) shares surged nearly 7% on Monday, extending gains after the company revealed it had landed a massive $1.6 billion contract with the U.S. Department of Veterans Affairs. The rally stood out in a rough day for tech, with the sector down 1.8% and the Nasdaq off 0.9%.
The deal, announced Friday, is a three-year Agentic Enterprise License Agreement that will bring Salesforce's agentic AI, Slack, MuleSoft, Data 360, and Tableau to the VA. The goal: modernize veteran care, improve care coordination, and streamline benefits delivery for more than 17 million veterans. It's a big win for Salesforce, which has been working with the VA for over a decade.
Technical Picture Improves
Monday's rally pushed Salesforce above its 20-day and 50-day simple moving averages, a sign that short-term momentum is picking up. But the stock still sits below its 100-day and 200-day moving averages, so the longer-term trend remains under pressure. The MACD is above its signal line with a positive histogram, suggesting selling pressure has eased.
The next resistance level to watch is around $175.50, near the 100-day moving average. On the downside, initial support sits around $156.50, which aligns with a recent buying zone.
Earnings and Analyst Outlook
Salesforce is set to report fiscal second-quarter results on Sept. 2. Analysts expect earnings of $3.09 per share, up from $2.91 a year ago, 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 target of $238.43. Recent analyst moves include a downgrade to Equal-Weight from Morgan Stanley on July 21 with a $185 target, a Hold initiation from CLSA on July 20 with a $165 target, and an Outperform rating from Evercore ISI Group on July 14 with a reduced target of $250.
Salesforce shares were trading at $174.92 at the time of publication, up 6.88% on the day.
