Oracle signs 10-year software contract with Pentagon worth up to $7 billion
The Pentagon announced a 10-year contract with Oracle worth up to $7 billion to supply on-premises software to the U.S. Department of Defense, intelligence community, and Coast Guard. The deal includes perpetual and subscription-based licenses, maintenance, and consulting. Oracle's stock rose about 3% in extended trading following the announcement. The DoD's CIO stated the contract saves at least $441 million for taxpayers by improving procurement of Oracle capabilities. The article also notes Oracle co-founder Larry Ellison's political ties to President Donald Trump, including a $45 million campaign donation and involvement in the Stargate AI data center project. Despite the contract win, Oracle shares are down 38% in 2026 due to investor concerns that AI could hurt software incumbents and the company's rising debt from AI data center buildouts.
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