Informatica (INFA) AI Stock Analysis

• Market Cap: $8.67B
• Dividend Yield: N/A
• Average Volume (3M): 2.57M
• Price to Earnings (P/E): 5259.6
• Beta (1Y): 0.83
• Revenue Growth: 1.16%
• EPS Growth: -104.62%
• Country: US
• Employees: 5,200
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.18
• Shares Outstanding: 260,676,330
• 10 Day Avg. Volume: 1,985,179
• 30 Day Avg. Volume: 2,571,944
• PEG Ratio: -7.32
• Price to Book (P/B): 3.39
• Price to Sales (P/S): 4.77
• P/FCF Ratio: 19.28
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 4.78
• Enterprise Value/Gross Profit: 5.93
• Enterprise Value/Ebitda: 26.19
• 1Y Price Target: $25.33
• Price Target Upside: 1.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 67 Neutral
• Price Target: $27.00 ▲(8.61% Upside)

Informatica's overall stock score reflects strong corporate events, particularly the Salesforce acquisition, which boosts its strategic outlook. However, challenges in profitability and valuation weigh down the score. Technical indicators suggest moderate bullish momentum, but the high P/E ratio and lack of dividend yield are concerns. The absence of earnings call data limits insights into management's outlook.

Positive Factors

Cloud Subscription Growth

Strong growth in cloud subscriptions indicates robust demand for Informatica's cloud services, enhancing its recurring revenue base and market position in the cloud data management sector.

Strategic Partnerships

Partnerships with major tech firms bolster Informatica's ecosystem integration, enhancing its competitive edge and expanding its reach in the data management and AI markets.

Salesforce Acquisition

The acquisition by Salesforce could provide strategic synergies, access to broader customer bases, and enhanced resources, potentially accelerating Informatica's growth and innovation capabilities.

Negative Factors

Profitability Challenges

Persistent profitability issues, despite revenue growth, may limit Informatica's ability to reinvest in growth initiatives and affect long-term financial health.

Declining Cash Flow Growth

Negative cash flow growth could constrain Informatica's ability to fund operations and strategic investments, impacting its financial flexibility and sustainability.

Negative Return on Equity

A negative return on equity indicates inefficiencies in generating shareholder returns, which may deter investor confidence and affect capital raising capabilities.

Informatica Business Overview & Revenue Model

Company Description

Informatica Inc. develops an artificial intelligence-powered platform that connects, manages, and unifies data across multi-cloud, hybrid systems at enterprise scale in the United States. The company's platform includes a suite of interoperable data management products, including data integration products to ingest, transform, and integrate data; API and application integration products that enable users to create and manage APIs and integration processes for app-to-app synchronization, business process orchestration, B2B partner management, application development, and API management; data quality products to profile, cleanse, standardize, and enrich data to deliver accurate, complete, and consistent data sets for analytics, data science, governance, and other initiatives; and master data management products to create an authoritative single source of truth of business-critical data to reduce data related errors and remove redundancies. Its platform also includes customer and business 360 products to create, visualize, and browse comprehensive 360-degree views of business-critical data; data catalog products that enables customers to quickly find, access, and understand enterprise data using a simple Google-like search experience; and governance and privacy products that help users govern data, enable compliance with regulatory and corporate policies, and drive broader data consumption. The company also offers maintenance and professional services. Informatica Inc. was founded in 1993 and is headquartered in Redwood City, California.

How the Company Makes Money

Informatica makes money through the sale of software subscriptions, licensing, and support services. Its primary revenue streams include subscriptions to its cloud-based data management platform and related support services. The company also generates revenue from consulting services that help clients implement and optimize Informatica's solutions. Significant partnerships with major cloud providers, such as Amazon Web Services, Microsoft Azure, and Google Cloud, further contribute to its sales by integrating its services into these ecosystems. Informatica's business model focuses on expanding its customer base, renewing subscriptions, and upselling additional features and services to existing clients.

Informatica Financial Statement Overview

Summary

Informatica demonstrates strong revenue growth and operational efficiency, as seen in its healthy gross profit and EBITDA margins. However, the company faces profitability challenges, with a negative net profit margin and return on equity. The balance sheet is stable with moderate leverage, but cash flow growth has recently declined. Overall, Informatica is positioned well in its industry but needs to focus on improving profitability and cash flow sustainability.

Income Statement

Informatica shows strong revenue growth with a TTM growth rate of 40.6%, indicating robust demand for its offerings. The gross profit margin remains healthy at 78.7%, reflecting efficient cost management. However, the company struggles with profitability, as evidenced by a negative net profit margin of -0.45% in the TTM, though there is improvement from previous years. The EBIT and EBITDA margins are solid, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.78, indicating a balanced approach to leverage. However, the return on equity is negative at -0.32%, highlighting challenges in generating returns for shareholders. The equity ratio stands at 45.4%, suggesting a stable capital structure but with room for improvement in profitability.

Cash Flow

Operating cash flow is strong, with a TTM figure of $432 million, and the free cash flow to net income ratio is nearly 1, indicating efficient cash generation relative to earnings. However, free cash flow growth is negative at -15.6%, pointing to potential challenges in sustaining cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.66B	1.64B	1.60B	1.51B	1.44B	1.32B
Gross Profit	1.34B	1.31B	1.26B	1.16B	1.11B	1.01B
EBITDA	303.07M	338.52M	241.02M	253.86M	327.39M	274.50M
Net Income	-7.54M	9.93M	-125.28M	-53.67M	-99.93M	-167.89M
Balance Sheet
Total Assets	5.25B	5.28B	5.20B	4.97B	4.99B	5.07B
Cash, Cash Equivalents and Short-Term Investments	1.30B	1.23B	992.27M	716.13M	496.42M	362.73M
Total Debt	1.86B	1.86B	1.89B	1.91B	1.93B	2.88B
Total Liabilities	2.87B	2.97B	2.99B	2.92B	3.00B	3.91B
Stockholders Equity	2.38B	2.31B	2.21B	2.05B	1.98B	1.17B
Cash Flow
Free Cash Flow	425.02M	405.91M	259.80M	194.59M	217.87M	153.92M
Operating Cash Flow	432.11M	409.85M	266.35M	200.06M	228.68M	167.75M
Investing Cash Flow	41.84M	-70.71M	-55.88M	-185.96M	-32.41M	-52.51M
Financing Cash Flow	-251.10M	-146.21M	21.37M	40.89M	-86.37M	70.29M

Informatica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INFA, the sentiment is Positive. The current price of 24.86 is above the 20-day moving average (MA) of 24.82, above the 50-day MA of 24.69, and above the 200-day MA of 22.79, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 63.30 is Neutral, neither overbought nor oversold. The STOCH value of 66.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INFA.

Informatica Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOX	74 Outperform	9.22B	16.93	15.84%	2.40%	-6.76%	13.90%
FOUR	73 Outperform	7.68B	32.20	13.85%	―	23.86%	79.35%
DBX	69 Neutral	8.01B	18.73	-37.18%	―	-0.04%	-5.07%
INFA	67 Neutral	$8.67B	5,259.57	-0.32%	―	1.16%	-104.62%
KVYO	65 Neutral	10.57B	-146.06	-6.08%	―	33.17%	82.85%
CFLT	61 Neutral	6.91B	-21.39	-29.31%	―	23.02%	21.01%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Informatica Corporate Events

Informatica’s Q2 2025 Financial Results and Salesforce Acquisition

Informatica announced its financial results for the second quarter of 2025, highlighting a 28.2% year-over-year growth in Cloud Subscription Annualized Recurring Revenue (ARR) to $901 million and a total ARR increase to $1.72 billion. The company also reported significant product innovations and expanded partnerships with major tech firms like AWS, Databricks, Microsoft, and Salesforce, enhancing its capabilities in AI and data management. Additionally, Informatica is in the process of being acquired by Salesforce, which has led to the company not hosting an earnings conference call or providing financial guidance for this quarter.

Informatica Elects New Directors at Annual Meeting

On June 18, 2025, Informatica held its annual meeting of stockholders to address key governance and operational matters. The meeting resulted in the election of Amit Walia, Bruce Chizen, and Mitesh Dhruv as Class I directors, the ratification of Ernst & Young LLP as the independent registered public accounting firm for 2025, and the approval of executive compensation on an advisory basis. These decisions reflect the company’s ongoing commitment to strong leadership and financial oversight.