Pentagon and Oracle sign a 10-year contract worth $7 billion

The Pentagon has awarded Oracle a landmark software contract valued at up to $7 billion over the next decade, marking one of the largest enterprise software agreements in U.S. defense history. The initial five-year deal is worth $3.31 billion, with an option to extend for another five years, bringing the total potential value to $6.99 billion. Under the agreement, Oracle will provide on-premise software, perpetual and subscription-based licenses, maintenance, and consulting services to the Pentagon, the U.S. Coast Guard, and the U.S. intelligence community. By replacing separate software purchases across multiple military branches with a single enterprise-wide agreement, the Department of Defense expects to save taxpayers at least $441 million. The contract, negotiated by the Department of the Navy, follows a similar $9.69 billion enterprise software agreement signed with Microsoft earlier this year, reflecting the Pentagon's broader strategy to streamline technology procurement and reduce duplication. The announcement also renewed attention on Oracle co-founder Larry Ellison, whose longstanding relationship with the Trump administration has drawn political interest. Following the news, Oracle shares climbed about 3%, offering a boost after recent declines linked to the company's aggressive AI investments. While Oracle's cloud business continues to post strong growth, its traditional software segment has faced pressure, making the defense contract a significant win for the company. The agreement highlights the Pentagon's increasing focus on centralized, cost-efficient technology infrastructure while strengthening partnerships with major enterprise software providers.