Oracle shares rose nearly 3% in premarket on Friday, bucking a broader market selloff, after the cloud and software giant announced a major contract win from the U.S. government.
The move came as a relief for the stock, which has fallen remarkably due to a mix of Oracle-specific concerns and market volatility. dipped 4.6% to $120.04 on Thursday, its lowest level since April 2025. If the stock falls below $116.85, the stock would hit a two-year low.
Shares have plunged more than 50% since the start of June, despite the company sitting on a record order backlog, leading more investors to view the stock as a potential buying opportunity.
Oracle Wins $7 Billion Pentagon Contract
Oracle on Thursday announced that it secured a Department of War Enterprise Software Agreement worth up to $6.99 billion for a tenure of over 10 years.
The contract covers Oracle software used in on-premises data centers across military branches, the U.S. intelligence community and the Coast Guard, according to a statement.
The contract – designed to consolidate fragmented software licensing and procurement into a single enterprise-wide contract – carries an initial award value of $3.31 billion over the first five-year ordering period and includes an unexercised option that would increase its total value to $6.99 billion.
Kirsten A. Davies, Chief Information Officer for the Department of War, said in a statement, "By fundamentally improving how we procure on-premises Oracle capabilities, we are driving at least $441 million in taxpayer savings while rapidly and effectively serving our warfighters."
Retail, Analyst View On ORCL
On Stocktwits, the retail sentiment for ORCL dipped slightly over the past week but was still ‘bullish’ on Friday.
“ORCL It’s official.The pump will start tomorrow,” a trader, while another , “$ORCL Order Filled. bought leaps here. Very attractive IMO.” Oracle’s shares are down 38% year to date, as of their last close.
Analysts, on average, forecast Oracle’s stock to more than double to $248.15.