TLDR
- Oracle (ORCL) stock turned positive Wednesday after securing an $88 million cloud contract with the U.S. Air Force
- The deal extends through December 2028 and provides Oracle Cloud Infrastructure services to Cloud One, the Air Force’s centralized cloud program
- Oracle shares had been under pressure recently due to investor concerns about weaker revenue growth despite strong cloud performance
- Cloud revenue jumped 34% to $8 billion in Q2 fiscal 2026, which ended in November
- The contract reinforces Oracle’s position as a key partner in Department of Defense cloud modernization efforts
Oracle stock climbed into positive territory Wednesday following news of an $88 million contract win with the U.S. Air Force. The deal marks another step in the company’s growing relationship with government agencies.
The firm-fixed price task order runs through December 7, 2028. Oracle will provide its Cloud Infrastructure services to Cloud One, the Air Force’s centralized cloud-hosting program.
Oracle shares had struggled in recent sessions. Investors sold off the stock over concerns about revenue growth rates, even as cloud revenue surged 34% to $8 billion in the second quarter of fiscal 2026.
The contract allows Department of Defense customers to access Oracle’s cloud infrastructure across multiple classification levels. Mission owners can tap into security services like the Secure Cloud Computing Architecture for enhanced boundary protection.
The deal also includes access to Oracle AI Database 26ai on OCI. This enables users to combine organization-specific and public information when running agentic AI workflows.
Cloud One Program Expansion
Work will be performed at contractor facilities throughout the United States. The task order covers OCI offerings used by Cloud One and its government customers across the Air Force and broader DoD enterprise.
Oracle described the contract as reinforcing its role in the Department of Defense’s cloud modernization push. The Texas-based company has been building its presence in government cloud services over recent years.
The Air Force awarded the task order on Thursday. Oracle shares rose 0.78% in premarket trading to $158.40 following the announcement.
Recent Stock Performance
Oracle shares have only returned to positive territory in the last two days. The stock had faced pressure as investors weighed revenue growth concerns against strong cloud performance numbers.
Second quarter fiscal 2026 ended in November. During that period, cloud revenue reached $8 billion, representing 34% growth year-over-year.
The Cloud One program offers DoD customers the ability to leverage OCI’s security, performance, and resiliency features. Users can also access advanced AI capabilities while maintaining security protocols.
Oracle will deliver services across multiple classification levels under the contract. This flexibility allows different government agencies to utilize the platform based on their specific security requirements.
The deal extends Oracle’s track record of securing major government contracts. The company has positioned itself as a trusted provider for sensitive government cloud workloads.
Premarket trading showed Oracle stock at $158.40, up 0.78% from the previous close. The contract announcement helped reverse recent negative momentum in the shares.
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