Informatica Downgraded to Neutral by Guggenheim Due to Pending Acquisition with Salesforce

Informatica's Q2 results exceeded expectations, prompting Guggenheim to downgrade the company to Neutral from Buy. The firm removed its last published price target of $27 and downgraded shares, reflecting the acquisition price of $25 per share and pending transaction with Salesforce. The deal is expected to close in Salesforce's early FY27.

Informatica (NYSE: INFA) reported strong second-quarter (Q2) 2025 results, exceeding market expectations across all key revenue and profitability metrics. The company's stock, however, faced a downgrade from Guggenheim Securities, which changed its rating from Buy to Neutral, primarily due to the pending acquisition by Salesforce (NYSE: CRM).

The downgrade comes amidst Informatica's robust financial performance. The company's Q2 2025 earnings report showed a surprise of -14.29%, with earnings of $0.18 per share missing the Zacks Consensus Estimate of $0.21 per share [2]. Despite this earnings miss, Informatica's revenues of $407.34 million for the quarter ended June 2025 surpassed the Zacks Consensus Estimate by 1.68% [2]. The company has topped consensus revenue estimates three times over the last four quarters [2].

Guggenheim Securities cited the acquisition price of $25 per share for Informatica stock as the primary reason for the downgrade. The acquisition price is slightly below Guggenheim's previous price target of $27 per share [1]. The pending transaction with Salesforce, expected to close in early fiscal year 2027, is valued at approximately $8 billion [1]. RBC Capital Markets, JPMorgan, and Wolfe Research have all raised their price targets for Informatica to $25, reflecting the acquisition's impact on the stock price [1].

The acquisition is expected to provide strategic benefits for both companies, with Informatica's data management capabilities complementing Salesforce's CRM offerings. Informatica's CEO, Amit Walia, noted the company's progress in integrating AI into its data management platform and the ongoing work towards closing the Salesforce transaction [2].

Investors should closely monitor Informatica's earnings outlook and the industry trends to assess the stock's future performance. The Zacks Rank for Informatica Inc. is currently #3 (Hold), indicating that the stock is expected to perform in line with the market in the near future [2].

References:
[1] https://www.investing.com/news/analyst-ratings/guggenheim-downgrades-informatica-stock-rating-to-neutral-following-salesforce-acquisition-news-93CH-4175386
[2] https://www.nasdaq.com/articles/informatica-inc-infa-lags-q2-earnings-estimates