Oracle signs 10-year software contract with Pentagon worth up to $7 billion

Oracle landed a 10-year software contract with the U.S. Department of Defense worth up to $7 billion, the Pentagon announced Thursday. The deal calls for Oracle to supply on-premises software to the military.

The stock climbed on the news, providing relief for a company that has faced investor pressure this year. The contract represents a significant expansion of Oracle's presence in the federal government sector, a strategic priority as the company competes for high-value, long-duration public-sector deals.

Oracle will deliver on-premises infrastructure rather than cloud-only services, reflecting the Pentagon's specific security and operational requirements for certain defense applications. The nearly decade-long commitment provides Oracle with predictable revenue visibility in a business segment that typically delivers higher margins and longer customer lock-in than commercial software sales.

The award comes as Oracle seeks to differentiate its government offerings from hyperscale cloud competitors and demonstrates the company's ability to win large-scale, mission-critical contracts in the defense space.