Pentagon Awards Oracle $6.99 Billion, 10-Year Software Deal

The Pentagon has historically bought Oracle software through separate arrangements across military services and intelligence agencies, creating fragmented licensing, maintenance and spending oversight. The new enterprise software agreement consolidates the department’s on-premises Oracle use under one direct-award contract, covering the armed services, intelligence community and U.S. Coast Guard. The deal is designed to improve visibility into technology spending and eliminate duplicative purchasing, while reinforcing Oracle’s position in mission-critical government systems as AI demand drives broader investment in cloud infrastructure.

The U.S. Department of Defense announced the agreement on July 23, 2026, after negotiations led by the Department of the Navy. The contract is valued at up to $6.99 billion over as long as 10 years and includes on-premises software licenses and related services. It is the Pentagon’s first enterprise-level direct award to Oracle. Oracle shares rose about 2.3% in after-hours trading following the announcement, as investors weighed the federal contract alongside strong demand for the company’s AI cloud infrastructure.