Oracle (ORCL) Stock Rises on $88 Million U.S. Air Force Contract

TLDR

• Oracle (ORCL) stock turned positive Wednesday following an $88 million cloud contract award from the U.S. Air Force
• The firm-fixed price deal extends through December 2028 for Oracle Cloud Infrastructure services supporting Cloud One
• Shares had declined recently on revenue growth concerns even as Q2 cloud revenue surged 34% to $8 billion
• The agreement reinforces Oracle’s role in Department of Defense cloud modernization programs
• Stock climbed 0.78% to $158.40 in premarket trading after the contract announcement

Oracle stock posted gains Wednesday after landing an $88 million contract with the U.S. Air Force. The deal marks a turnaround for shares that had struggled in recent sessions.

Oracle Corporation, ORCL

The three-year task order runs through December 7, 2028. Oracle will provide Cloud Infrastructure services for Cloud One, the Air Force’s centralized cloud platform.

Investors had sold Oracle shares recently over revenue growth worries. The selling continued despite cloud revenue jumping 34% to $8 billion in the company’s second quarter of fiscal 2026.

The contract enables Department of Defense customers to access Oracle Cloud Infrastructure across various security classification levels. The platform includes advanced security tools like the Secure Cloud Computing Architecture.

Government Cloud Services Expand

Oracle AI Database 26ai forms part of the contract package. Government users can securely combine classified and public information when running agentic AI workflows.

The task order covers Oracle Cloud Infrastructure offerings used by Cloud One and its government customers. Services extend across the Air Force and broader DoD enterprise.

Oracle described the contract as bolstering its position in Department of Defense cloud modernization efforts. The company has built a growing presence in government cloud services over recent years.

Contractor facilities throughout the United States will perform the work. The Air Force issued the task order on Thursday.

Recent Performance and Recovery

Oracle shares only returned to positive territory in the past two days. Revenue growth concerns weighed on the stock despite strong cloud segment results.

The second quarter of fiscal 2026 ended in November with cloud revenue hitting $8 billion. The 34% growth rate failed to alleviate investor worries about overall revenue trends.

Premarket trading showed Oracle at $158.40, up 0.78% from the previous close. The Air Force contract helped lift shares out of recent declines.

The Cloud One program gives DoD customers access to Oracle Cloud Infrastructure’s security, performance and resiliency features. Users can deploy the platform based on specific classification requirements.

Oracle will deliver services across multiple security classification tiers. This approach provides flexibility for different government agencies with varying security needs.

The deal expands Oracle’s government contract portfolio. The Texas-based company has established itself as a trusted provider for sensitive government cloud operations.

Mission owners can leverage DoD security services through the program. The Secure Cloud Computing Architecture helps meet boundary protection requirements for the Defense Information Systems Network.

Oracle shares had faced downward pressure as investors assessed growth metrics. Cloud revenue growth of 34% in Q2 reached $8 billion but failed to satisfy market expectations.

The stock moved 0.78% higher in premarket sessions to $158.40. The Air Force contract provided the catalyst for the reversal in share price direction.

Government customers gain access to advanced AI capabilities while maintaining security compliance. Oracle AI Database 26ai enables sophisticated agentic AI workflows using both classified and public data.

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