Oracle NYSE:ORCL rose 2.97% intraday after the Financial Times reported that the company is the front-runner to build an air-gapped cloud system for Japan's government, ahead of Amazon Web Services NASDAQ:AMZN, Microsoft NASDAQ:MSFT, and Google NASDAQ:GOOGL. The enterprise software and cloud company, best known for its databases, would supply infrastructure sealed off from the public internet to store and process classified national security data.
Oracle reportedly moved ahead by signaling early it would deliver a fully air-gapped system, while Microsoft and AWS argued commercial cloud alternatives were secure enough. The push comes as Washington presses Tokyo to tighten cyber defenses, pressure sharpened by the UK-Japan fighter jet program and a need to share intelligence with allies. Japan hasn't made a final decision and could split the work among several providers. AWS called the reporting wrong.
Oracle had been trading near a 52-week low after its latest results laid out up to $95 billion in fiscal 2027 capital spending, negative free cash flow, and a debt-funded financing plan, leaving the stock down more than 60% from its September 2025 peak.