The Department of War awarded Oracle a software contract worth up to $6.99 billion to modernize military technology and reduce costs.

The Department of War announced a new software agreement with Oracle to modernize technology across the military and streamline procurement processes. The contract carries a base value of $3.31 billion over the first five years, with an option to reach a total value of $6.99 billion over 10 years. The administration announced that the deal will consolidate fragmented software purchases into a single framework, which is projected to save taxpayers at least $441 million. Kirsten Davies, Chief Information Officer for the Department of War, stated that the agreement will provide secure, scalable technology to support warfighters across the department, the Coast Guard, and the intelligence community. The contract allows for the purchase of on-premises software, software-as-a-service applications, and professional services. Military organizations will begin transitioning to this new framework in the summer of 2026. Retail traders noted that the deal strengthens the long-term investment case for Oracle as the government increases spending on artificial intelligence and national security.

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