Defense Department Awards Oracle $6.99 Billion Software Contract

The U.S. Department of Defense awarded Oracle Corporation a software contract worth up to $6.99 billion on July 23, 2026. Negotiated by the Department of the Navy through the Naval Information Warfare Center Pacific, the 10-year Enterprise Software Agreement consolidates on-premises licenses, cloud-based Software-as-a-Service (SaaS) applications, and technical support for the military, U.S. Coast Guard, and intelligence community into a single framework.

The agreement has a base value of $3.31 billion over five years, with options to extend for an additional five years. This centralized procurement system aims to modernize IT for more than 3.4 million personnel and eliminate fragmented, duplicative purchasing. The initiative is projected to save taxpayers at least $441 million. Defense agencies are scheduled to transition to this contract vehicle in the summer of 2026.

This move follows a broader effort to centralize federal IT procurement initiated by an executive order from President Donald Trump and implementation measures by Secretary of Defense Pete Hegseth. It mirrors a similar consolidation deal signed in May involving Microsoft licenses. Following the announcement, Oracle shares rose approximately 2% to 2.3% in after-hours trading.