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Informatica Boosts Salesforce's Data Edge: Can It Unlock More Growth?
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Key Takeaways
Informatica contributed $456M to Salesforce's Q2'27 revenues, including $440M in subscriptions.
CRM's Agentforce and Data 360 recurring revenues, including Informatica Cloud, surged over 210% YoY to $3.9B.
Data 360 ingested 104T records, up 355%, as Informatica opens opportunities for more AI-powered services.
Salesforce, Inc. (CRM - Free Report) is strengthening its enterprise data business through Informatica, which could help the company expand its artificial intelligence (AI) offerings and generate additional revenues. The key question is whether this data advantage can support faster and more sustainable growth.
In the second quarter of fiscal 2027, Informatica contributed $456 million to Salesforce’s revenues, including $440 million from subscription and support services. Salesforce reported total quarterly revenues of $11.3 billion, up 11% year over year. Subscription and support revenues increased 12% to $10.8 billion, highlighting the strength of its recurring business.
Informatica’s importance extends beyond its immediate revenue contribution. Its cloud-based data management capabilities can help Salesforce organize information across different systems, giving AI agents access to more useful and reliable business data. This could improve the value of Agentforce and Data 360, encouraging existing customers to purchase additional services.
Salesforce’s data and AI business is already expanding rapidly. Combined Agentforce and Data 360 annual recurring revenues, including Informatica Cloud, reached nearly $3.9 billion in the second quarter, up more than 210% year over year. Data 360 ingested 104 trillion records during the quarter, up 355% year over year. These figures highlight rising demand for enterprise data and AI capabilities.
Informatica strengthens Salesforce’s data capabilities and creates opportunities to sell more AI-powered services. If Salesforce successfully connects its data assets with Agentforce, Informatica could become a key long-term growth driver rather than simply another source of acquired revenues. The Zacks Consensus Estimate for CRM’s fiscal 2027 revenues is pegged at $46.3 billion, indicating an 11.4% year-over-year increase.
Microsoft and Oracle Challenge Salesforce in Data Management
Microsoft Corporation (MSFT - Free Report) is a strong competitor through Azure, Microsoft Fabric and its enterprise data tools. In the fourth quarter of fiscal 2026, the company reported that Azure and other cloud services revenues increased 43% year over year.
Microsoft also had more than 40,000 paid Fabric customers at the end of the fourth quarter, up 60% year over year, highlighting rising demand for data analytics and AI tools. Its expanding data platform could challenge Salesforce as businesses seek better ways to organize information and power AI applications.
Oracle Corporation (ORCL - Free Report) is another major rival, with its database technology and cloud applications supporting enterprise data management. In the first quarter of fiscal 2027, the company’s Cloud Applications revenues reached $4.2 billion, up 10% year over year.
Oracle’s Multicloud AI Database business grew an impressive 353%, reflecting rising demand for AI-ready data platforms. Multicloud customers increased 180% year over year, and Oracle expanded its database reach to 70 multicloud regions and 119 availability zones.
Salesforce’s Informatica acquisition strengthens its data management capabilities, but sustained growth will depend on turning that advantage into wider AI adoption and higher customer spending.
Salesforce’s Price Performance, Valuation and Estimates
Salesforce shares have declined 8.4% year to date, while the Zacks Internet – Software industry has risen 3.7%.
Salesforce YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 15.04, significantly below the industry’s average of 28.97.
Salesforce Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Salesforce’s fiscal 2027 earnings implies a year-over-year increase of approximately 33.5%, while estimates for fiscal 2028 indicate a 4.9% decline. Estimates for fiscal 2027 earnings have been revised upward in the past 30 days. Estimates for fiscal 2028 earnings have been revised upward over the past seven days.
View the Zacks #1 Rank List
Image: Bigstock
Informatica Boosts Salesforce's Data Edge: Can It Unlock More Growth?
Key Takeaways
Salesforce, Inc. (CRM - Free Report) is strengthening its enterprise data business through Informatica, which could help the company expand its artificial intelligence (AI) offerings and generate additional revenues. The key question is whether this data advantage can support faster and more sustainable growth.
In the second quarter of fiscal 2027, Informatica contributed $456 million to Salesforce’s revenues, including $440 million from subscription and support services. Salesforce reported total quarterly revenues of $11.3 billion, up 11% year over year. Subscription and support revenues increased 12% to $10.8 billion, highlighting the strength of its recurring business.
Informatica’s importance extends beyond its immediate revenue contribution. Its cloud-based data management capabilities can help Salesforce organize information across different systems, giving AI agents access to more useful and reliable business data. This could improve the value of Agentforce and Data 360, encouraging existing customers to purchase additional services.
Salesforce’s data and AI business is already expanding rapidly. Combined Agentforce and Data 360 annual recurring revenues, including Informatica Cloud, reached nearly $3.9 billion in the second quarter, up more than 210% year over year. Data 360 ingested 104 trillion records during the quarter, up 355% year over year. These figures highlight rising demand for enterprise data and AI capabilities.
Informatica strengthens Salesforce’s data capabilities and creates opportunities to sell more AI-powered services. If Salesforce successfully connects its data assets with Agentforce, Informatica could become a key long-term growth driver rather than simply another source of acquired revenues. The Zacks Consensus Estimate for CRM’s fiscal 2027 revenues is pegged at $46.3 billion, indicating an 11.4% year-over-year increase.
Microsoft and Oracle Challenge Salesforce in Data Management
Microsoft Corporation (MSFT - Free Report) is a strong competitor through Azure, Microsoft Fabric and its enterprise data tools. In the fourth quarter of fiscal 2026, the company reported that Azure and other cloud services revenues increased 43% year over year.
Microsoft also had more than 40,000 paid Fabric customers at the end of the fourth quarter, up 60% year over year, highlighting rising demand for data analytics and AI tools. Its expanding data platform could challenge Salesforce as businesses seek better ways to organize information and power AI applications.
Oracle Corporation (ORCL - Free Report) is another major rival, with its database technology and cloud applications supporting enterprise data management. In the first quarter of fiscal 2027, the company’s Cloud Applications revenues reached $4.2 billion, up 10% year over year.
Oracle’s Multicloud AI Database business grew an impressive 353%, reflecting rising demand for AI-ready data platforms. Multicloud customers increased 180% year over year, and Oracle expanded its database reach to 70 multicloud regions and 119 availability zones.
Salesforce’s Informatica acquisition strengthens its data management capabilities, but sustained growth will depend on turning that advantage into wider AI adoption and higher customer spending.
Salesforce’s Price Performance, Valuation and Estimates
Salesforce shares have declined 8.4% year to date, while the Zacks Internet – Software industry has risen 3.7%.
Salesforce YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 15.04, significantly below the industry’s average of 28.97.
Salesforce Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Salesforce’s fiscal 2027 earnings implies a year-over-year increase of approximately 33.5%, while estimates for fiscal 2028 indicate a 4.9% decline. Estimates for fiscal 2027 earnings have been revised upward in the past 30 days. Estimates for fiscal 2028 earnings have been revised upward over the past seven days.
Image Source: Zacks Investment Research
Salesforce currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.