Stocktwits retail traders said the contract could be the first of many government AI wins, with some also turning bullish on Palantir and enterprise software peers.

  • Oracle secured a Department of War software agreement valued at $3.31 billion initially, with an option that could lift the contract’s value to $6.99 billion.
  • Retail traders said the award strengthens the long-term investment case for Oracle as AI becomes a growing national security priority.
  • Some Stocktwits users said the contract is also a positive read-through for Palantir, ServiceNow, Microsoft and Salesforce as government AI spending expands.

Shares of Oracle Corp. (ORCL) gained nearly 3% in after-hours trading on Thursday after the company secured a Department of War Enterprise Software Agreement worth up to $6.99 billion over 10 years.

At the time of writing, the stock was up about 2.5% after-hours after closing the regular session down 4.6%.

Pentagon Awards ORCL Enterprise Software Agreement

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 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. The initial five-year agreement includes perpetual and subscription-based software licenses, maintenance, support and consulting services.

The agreement is designed to consolidate fragmented software licensing and procurement into a single enterprise-wide contract, with the Department projecting at least $441 million in taxpayer savings over its lifetime.

Defense Secretary Pete Hegseth estimated earlier this week that the war with Iran has cost the U.S. $37.5 billion since it began in February, reported AP.

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.”

ORCL Stock: What Stocktwits Retail Sentiment Says

On Stocktwits, retail sentiment for ORCL was ‘extremely bullish,’ unchanged over the past 24 hours, while message volume was ‘extremely high’ at the time of writing.

Retail chatter on Stocktwits quickly expanded beyond Oracle’s Pentagon contract, with some traders saying it reinforces a broader AI-driven government spending theme.

One retail trader identified Oracle and Palantir Technologies (PLTR) as the biggest beneficiaries of rising national security and defense AI spending. Calling the deal “only the first of many major government wins for Oracle,” the trader said both Oracle and Palantir stand to gain as AI becomes a national priority and government agencies increase spending on the technology.

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Another retail trader said the Pentagon contract was bullish not just for Oracle, but for the broader enterprise software sector, adding that companies such as ServiceNow (NOW), Microsoft (MSFT) and Salesforce (CRM) could also benefit from increased government spending. The trader added that Oracle’s nearly $7 billion deal signals “where the market of software is going.”

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One trader said the stock “should have popped to 128 on the news,” adding that it could still climb to $135.

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ORCL shares have lost around 38% year-to-date.

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