IBM to Support Missile Defense Agency SHIELD Contract

Rhea-AI Summary

IBM (NYSE: IBM) was selected to support the Missile Defense Agency's SHIELD program under an indefinite-delivery/indefinite-quantity (IDIQ) contract with a $151 billion ceiling. The award covers broad work areas to accelerate delivery of AI-enabled, mission-grade capabilities that prioritize governance, interoperability, and security for the warfighter.

IBM highlighted decades of federal experience and said it will help agencies operationalize AI to improve efficiency, productivity, and decision-making across defense missions.

Positive

• IDIQ contract ceiling of $151 billion
• Expands IBM's role delivering AI-enabled defense capabilities
• Emphasizes mission-grade security, governance, and interoperability

Negative

• IDIQ ceiling $151 billion does not guarantee specific funded orders

News Market Reaction

+0.29%

1 alert

+0.29% News Effect

On the day this news was published, IBM gained 0.29%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

SHIELD IDIQ ceiling: $151 billion

1 metrics

SHIELD IDIQ ceiling $151 billion Ceiling value of Missile Defense Agency SHIELD IDIQ contract

Market Reality Check

Price: $298.93 Vol: Volume 8,339,713 is 1.58x...

high vol

$298.93 Last Close

Volume Volume 8,339,713 is 1.58x the 20-day average of 5,266,664, indicating elevated trading interest ahead of this news. high

Technical Shares at $289.05 are above the 200-day MA of $278.56, trading 11.03% below the $324.90 52-week high and 34.76% above the $214.50 52-week low.

Peers on Argus

IBM declined 1.79% while key IT services peers were mostly positive: ACN +1.6%, ...

IBM declined 1.79% while key IT services peers were mostly positive: ACN +1.6%, CTSH +4.92%, FIS +1.32%, INFY +0.18%, with only FI -0.17%. The mixed but generally positive peer moves suggest IBM’s reaction was more stock-specific than sector-driven.

Common Catalyst Some peers also reported U.S. federal contract wins (e.g., ACN with VA health records), pointing to a broader government IT modernization trend.

Historical Context

5 past events · Latest: Jan 30 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 30	Board appointment	Positive	+2.6%	Ramon L. Laguarta elected to IBM’s board to support long-term value.
Jan 28	Earnings results	Positive	+0.1%	Fourth-quarter 2025 revenue of $19.7B with growth in Software and Infrastructure.
Jan 20	AI partnership	Positive	-4.7%	Launch of GRAMMY IQ and watsonx-based fan experiences for the Grammys.
Jan 15	Product launch	Positive	-3.6%	Introduction of IBM Sovereign Core for AI-ready sovereign environments.
Jan 14	Earnings date notice	Neutral	+1.9%	Announcement of timing and webcast details for Q4 2025 results.

Pattern Detected

Recent IBM news shows mixed market reactions: board and earnings items saw small positive moves, while product and partnership launches sometimes faced negative reactions, indicating that not all innovation or partnership announcements translate into immediate share gains.

Recent Company History

Over the past month, IBM has reported several strategic developments. On Jan 30, 2026, a new director, Ramon L. Laguarta, was elected, and the stock rose 2.62%. Fourth-quarter 2025 results on Jan 28 showed $19.7B revenue and a modest 0.1% move. Product and AI partnership news on Jan 20 and Jan 15 triggered declines of 4.68% and 3.59%. Today’s SHIELD contract support extends IBM’s federal and defense focus within this ongoing innovation and government-oriented trajectory.

Market Pulse Summary

This announcement highlights IBM’s role in the Missile Defense Agency’s SHIELD program under an IDIQ...

Analysis

This announcement highlights IBM’s role in the Missile Defense Agency’s SHIELD program under an IDIQ contract with a $151 billion ceiling, reinforcing its long-term federal and defense positioning. It underscores IBM’s emphasis on AI-enabled sensing, security, and mission-grade solutions for U.S. agencies. In context of recent board, earnings, and product news, this expands the company’s government-focused pipeline. Investors may watch future task orders, AI adoption in defense, and subsequent federal contract disclosures to gauge tangible impact.

Key Terms

indefinite-delivery/indefinite-quantity (idiq), idiq contract, ai-enabled sensing

3 terms

indefinite-delivery/indefinite-quantity (idiq) regulatory

"This indefinite-delivery/indefinite-quantity (IDIQ) contract, with a ceiling of $151 billion..."

An indefinite-delivery/indefinite-quantity (IDIQ) contract is a purchasing agreement where a buyer commits to order goods or services over a set period but does not promise exact quantities up front, instead placing individual orders as needs arise within agreed limits. For investors, IDIQs matter because they can create steady, multi-year revenue opportunities and backlog visibility like a supplier having a standing store account — but actual cash depends on each future order and on the buyer’s budget and timing.

idiq contract regulatory

"This indefinite-delivery/indefinite-quantity (IDIQ) contract, with a ceiling of $151 billion..."

An IDIQ contract (Indefinite Delivery/Indefinite Quantity) is a purchasing agreement that a buyer—often a government agency—uses to order unspecified amounts of goods or services over a set time, with individual orders placed as needs arise. For investors, IDIQs matter because they can create a predictable sales pipeline and stable customer relationship while leaving actual revenue timing and total value flexible, similar to a standing order with intermittent shipments.

ai-enabled sensing technical

"...including AI-enabled sensing – to deliver solutions with built-in governance..."

A system that combines physical sensors (like cameras, microphones, chemical detectors or motion sensors) with artificial intelligence to turn raw signals into clear, automated insights—think of sensors as the ears and eyes and AI as the brain that interprets what they detect. Investors care because ai-enabled sensing can lower operating costs, create new product or service opportunities, improve decision speed and accuracy, and become a durable competitive advantage for companies that can scale it reliably.

AI-generated analysis. Not financial advice.

WASHINGTON, Feb. 5, 2026 /PRNewswire/ -- IBM (NYSE: IBM) today announced it was selected to support the Missile Defense Agency's Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) program. This indefinite-delivery/indefinite-quantity (IDIQ) contract, with a ceiling of $151 billion, encompasses a broad range of work areas that allow for the rapid delivery of innovative capabilities to the warfighter with increased speed and agility.

IBM has supported the U.S. federal government for nearly a century, delivering technology that enhances mission outcomes while prioritizing security. Today, IBM is helping agencies operationalize AI to improve efficiency, productivity, and decision-making across missions. In defense, this means drawing on deep experience and sustained investment in advanced technology and research – including AI-enabled sensing – to deliver solutions with built-in governance, interoperability, and mission-grade security. This approach provides agencies such as the Missile Defense Agency with tools to accelerate deployment of modern capabilities, protect sensitive data, and strengthen national defense.

"IBM is proud to partner with the Missile Defense Agency to accelerate the delivery of advanced, mission-critical capabilities," said Susan Wedge, Managing Partner, U.S. Federal Market for IBM. "By bringing the full depth of our expertise and cutting-edge technologies, we will help ensure the warfighter is equipped to respond with greater speed, agility, and confidence in an increasingly complex threat environment."

About IBM
IBM is a leading global provider of hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity and service. Visit www.ibm.com for more information.

Media contact:

Banks Willis
IBM
banks.willis@ibm.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/ibm-to-support-missile-defense-agency-shield-contract-302679668.html

SOURCE IBM

FAQ

What did IBM (NYSE: IBM) announce about the Missile Defense Agency SHIELD contract on Feb 5, 2026?

IBM announced selection to support the Missile Defense Agency SHIELD program under an IDIQ contract with a $151 billion ceiling. According to IBM, the work covers broad areas to accelerate AI-enabled, mission-grade capabilities for the warfighter.

How large is the SHIELD contract ceiling IBM (NYSE: IBM) was awarded?

The SHIELD IDIQ contract has a $151 billion ceiling, per IBM. According to IBM, this ceiling enables a wide range of task orders focused on rapid delivery of advanced defense capabilities.

What capabilities will IBM (NYSE: IBM) provide under the SHIELD program?

IBM will provide AI-enabled sensing, governance, interoperability, and mission-grade security solutions for defense missions. According to IBM, the aim is to help agencies operationalize AI to improve efficiency and decision-making.

Does the SHIELD IDIQ award to IBM (IBM) guarantee immediate revenue for shareholders?

The IDIQ award establishes a contract ceiling but does not guarantee specific funded orders or revenue immediately. According to IBM, task orders under the IDIQ will determine actual funded work and timing.

How does IBM (NYSE: IBM) position its federal experience in supporting the Missile Defense Agency?

IBM cites nearly a century of federal support and deep investment in advanced technology and research to bolster defense missions. According to IBM, that experience underpins delivery of secure, interoperable, AI-enabled solutions.