Salesforce has restarted talks to buy data-management software maker Informatica, said reports. While an acquisition could pressure Salesforce stock, analysts say a deal could boost the software maker's artificial intelligence strategy.
Also, Salesforce could buy Informatica at a much lower per-share price than speculated in April 2024.
Meanwhile, Salesforce first quarter earnings are due on Wednesday.
On Friday, Informatica stock popped over 17% to close at 22.55 while Salesforce stock fell 3.6% to 273.13.
Amid the rise of "generative" AI, companies aim to use proprietary company data to build and train AI models. Informatica's data management software helps companies collect data from different sources and classify and cleanse that data.
Also, Salesforce already offers Informatica products to its customers through a marketing partnership.
Informatica Cloud Business Key Asset
"With the rise of GenAI, many software companies are realizing the importance of data and distribution, especially as enterprises look to get their data estates in order," said RBC Capital analyst Rishi Jaluria in a report commenting on a possible Salesforce purchase of Informatica.
In April 2024, Salesforce reportedly was weighing an offer in the mid-$30s per share for Informatica. Further, Informatica stock hit a high near 40 on April 12, 2024
"One way to think about valuation is that Informatica's cloud business annual recurring revenue is expected to grow 25% year-over-year at a $1 billion scale this year, which on a standalone basis would likely be valued at least 6 to 7 times, with the rest of the business likely to be valued at 1 to 2 times, which indicates a $20 to $26 per share (offer)," said JPMorgan analyst Pinjalim Bora in a report.
Bora added that Informatica has recently dealt with "execution challenges" amid "a rapid evolution of the data landscape."
As of Friday's market close, Salesforce stock had retreated 17% in 2025. Informatica stock is still down 11% this year with Friday's pop.
Regulators would likely approve a Salesforce-Informatica deal, analysts say.
"We believe companies may view the current (Trump) administration as being more friendly to large-scale M&A," Jalura added.
In fiscal 2026, which starts with the current April quarter, some analysts have estimated a 1% revenue lift from artificial intelligence products for Salesforce stock. Overall, Salesforce revenue is projected to grow about 8% in fiscal 2026.
Salesforce Stock: Shift To AI Agents
In late 2024, Salesforce and other software makers began shifting their marketing strategy away from generative AI "copilots" to autonomous, goal-driven AI "agents."
Copilots — basically conversational chatbot interfaces — aim to improve worker productivity but rely on human prompts. Agents execute multistep tasks on behalf of users by solving problems and taking action.
Salesforce introduced Agentforce at its Dreamforce customer conference in September 2024. In December, Salesforce announced an upgraded version, Agentforce 2.0, along with its "Digital Labor Platform."
Salesforce is among AI stocks to watch.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
