Oracle rose 1.9% before the market opened on Friday after the company won nearly $7 billion in software contracts from the U.S. Department of Defense
The company (Oracle) announced that it has reached an enterprise software agreement with the U.S. Department of Defense with a term of up to 10 years and a value of nearly US$7 billion, aiming to integrate software procurement for various U.S. military services and intelligence agencies. Boosted by the news, Oracle's shares rose 1.9% in pre-market trading on Friday. The contract is an Indefinite Delivery/Indefinite Quantity (IDIQ) agreement and was negotiated by the Department of the Navy. The basic period of the contract is five years and the amount is US$3.31 billion. If the five-year extension option is exercised, the total value will reach US$6.99 billion. The scope of the contract covers the Department of Defense, Coast Guard and the U.S. intelligence community. Under the agreement, authorized DoD organizations can purchase Oracle's commercial products through task orders, including on-premises software licenses, Software as a Service (SaaS) applications and professional services. Kirsten Davies, chief information officer of the U.S. Department of Defense, said that by consolidating decentralized Oracle software purchases, it is expected to save taxpayers at least $441 million while improving service efficiency for warfighters. Kim Lynch, executive vice president of Oracle's Government, Defense and Intelligence Group, pointed out that for the Department of Defense, the challenge is to acquire technology quickly, compliantly and at scale, and this contract is designed to support this through standardized processes. Oracle has been a software supplier to the U.S. Department of Defense since the 1990s, and Department of Defense agencies are expected to transition to the new contract framework in the summer of 2026. The agreement continues the Department of Defense's trend of consolidating IT procurement, following the Pentagon's May agreement with The company signed a similar five-year enterprise software contract worth $9.69 billion.