REDWOOD CITY, Calif. - Informatica (NYSE: INFA), a $5.87 billion market cap company specializing in AI-powered cloud data management, has announced a strategic agreement with Microsoft to enhance innovation and customer adoption on the Microsoft Azure cloud platform. The declaration was made during Informatica World, the company’s annual conference. With an impressive gross profit margin of 80.54% and a perfect Piotroski Score of 9 according to InvestingPro, the company demonstrates strong financial health and operational efficiency.
The collaboration aims to deliver AI-powered solutions that integrate Informatica’s Intelligent Data Management Cloud platform with Microsoft services such as Microsoft Fabric and Azure. Informatica’s platform is available on Azure and through Azure Marketplace, supporting customers in building data foundations for analytics and AI-driven business transformations. The company’s strong liquidity position, with a current ratio of 1.92, provides a solid foundation for this strategic expansion.
Amit Walia, CEO of Informatica, emphasized the joint commitment to customer empowerment in their cloud and AI transformation journey. The agreement is said to reflect a shared vision for driving customer success through co-innovation and collaboration.
The partnership builds upon a history of collaboration, including Informatica’s integration with various Microsoft services like Power BI and Azure Synapse. Recent joint efforts include making Informatica’s platform an Azure Native Service and partnering as a design partner for Microsoft Fabric.
Global enterprises such as KPMG and Jotun have adopted Informatica’s cloud platform on Azure for their data strategies. Gro Kamfjord, Head of Data at Jotun, highlighted the seamless integration of Informatica’s platform with Jotun’s Microsoft ecosystem.
Scott Guthrie, Executive Vice President at Microsoft, noted the commitment to accelerating customer innovation with trusted data analytics and AI solutions. He stated that the combination of Informatica’s platform with Microsoft services would provide organizations with a comprehensive view of their data and expedite the realization of value.
The announcement solidifies Informatica’s dedication to a joint market approach with Microsoft, aiming to meet the data management needs of customers in the AI era.
Informatica’s offerings are designed to help businesses manage the growing complexity and volume of data, providing a complete platform that integrates with major cloud providers and analytics tools without causing vendor lock-in.
This news is based on a press release statement from Informatica. With annual revenue of $1.66 billion and positive growth expectations, InvestingPro analysis suggests the company is currently trading slightly below its Fair Value. For deeper insights into Informatica’s financial health and growth prospects, including 10+ additional ProTips and comprehensive valuation metrics, investors can access the detailed Pro Research Report available on InvestingPro.
In other recent news, Informatica reported its first-quarter earnings for 2025, revealing mixed financial results. While the company’s revenue exceeded expectations at $403.9 million, surpassing the anticipated $392.1 million, its earnings per share (EPS) fell short at $0.22 compared to the forecasted $0.24. Despite these mixed outcomes, Informatica’s cloud subscription annual recurring revenue (ARR) demonstrated significant growth, increasing by 30% year-over-year. The company reaffirmed its full-year guidance, projecting continued expansion in cloud subscriptions and aiming to achieve $1 billion in cloud subscription ARR by year-end.
Goldman Sachs adjusted its price target for Informatica to $20, up from $18, while maintaining a Neutral rating. This update followed the company’s first-quarter results, which surpassed consensus expectations, including a 3% increase in revenue. Informatica’s operating margin and free cash flow margin also outperformed, suggesting operational improvements. However, concerns about the company’s Cloud ARR guidance, which assumes heavier second-half seasonality, have introduced potential execution risks.
DA Davidson maintained a Neutral rating on Informatica with an $18 price target, highlighting the company’s resilience amidst global economic concerns. The firm noted Informatica’s growth in subscription revenues and cloud migrations as key performance drivers. Despite the mixed earnings results, Informatica’s strategic focus on cloud services and AI capabilities, along with expanded partnerships with major tech firms, underscores its ongoing business transformation.
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