Oracle Secures $6.99B Pentagon Software Contract, Stock Rises Nearly 3% After-Hours on Thursday

According to the Pentagon, Oracle secured a Department of War Enterprise Software Agreement worth up to $6.99 billion over 10 years on Thursday, with the contract covering software deployed across U.S. military branches, intelligence community and Coast Guard. The initial award value is $3.31 billion over the first five-year period, with an unexercised option to increase total value to $6.99 billion.

The contract is projected to generate at least $441 million in taxpayer savings over its lifetime by consolidating fragmented software licensing into a single enterprise-wide agreement. Oracle shares gained nearly 3% in after-hours trading following the announcement.