The Pentagon awarded Oracle a consolidated software contract worth nearly $7 billion over the next decade.
The Department of Defense awarded Oracle a consolidated software agreement covering the U.S. military, the Coast Guard, and the intelligence community. The contract, which includes a five-year base period and a five-year option, is valued at a ceiling of $6.99 billion. Kirsten Davies, the Department of Defense's chief information officer, stated the agency expects to save taxpayers at least $441 million by improving how it procures on-premises Oracle capabilities. Despite the significant win, Oracle shares fell 4.2% on Friday. Investors are currently pricing the stock based on the costs of winning contracts rather than the contracts themselves. The company is currently navigating high capital expenditures to build AI data centers, which has led to a credit rating cut and a projected $20 billion share sale. While Oracle's revenue grew 17% in fiscal 2026, the massive debt required for expansion has made investors cautious. Oracle co-founder Larry Ellison, a supporter of President Trump, remains a key figure in the company's growth as it expands its cloud and AI presence.