Oracle secures $7 billion DoD contract amid $55 billion AI spending

Oracle Corporation won a 10‑year contract with the U.S. Department of Defense under the Enterprise Software Initiative, potentially worth $7 billion in total ($3.3 billion in the first five years). The agreement is intended to centralize and expedite procurement of Oracle software and services for military organizations and their contractors.

In its fiscal 2026 earnings released on June 10, Oracle disclosed capital expenditures of $55.7 billion—about 82.6 % of its $67.4 billion revenue—leaving a negative free‑cash flow of $23.7 billion. The company reported a 17 % year‑over‑year revenue increase but said capex exceeded its own guidance. Oracle also highlighted a record $638 billion in remaining performance obligations and $75 billion in pre‑payments for AI contracts. For fiscal 2027, Oracle projected capex up to $95 billion, planning to raise roughly $40 billion through debt and equity, with $20‑$25 billion expected to be reimbursed by customers. The financial outlook prompted a decline in Oracle’s share price after hours.