Oracle Lands $88 Million Air Force Cloud Order as Federal Wins Lift Its AI Cloud Push

Overview

• On February 12, the U.S. Air Force awarded Oracle an $88 million firm-fixed-price task order to provide Oracle Cloud Infrastructure services for the Cloud One program.
• The Air Force work will be performed at contractor-specified facilities across the United States and is scheduled to run through December 7, 2028.
• Reporting from February 11 indicates Oracle won a CMS engagement to modernize systems by consolidating and migrating selected on‑premise workloads to Oracle Cloud Infrastructure, aiming to meet strict security and compliance needs.
• DA Davidson upgraded Oracle to Buy with a $180 price target, citing easing worries about the company’s ties to OpenAI and expectations for related data center demand.
• Oracle says the Air Force award extends its role in Defense Department cloud modernization, and recent analysis highlights these federal deals as contributors to the company’s upside potential.