U.S. Department of the Air Force Accelerates Cloud Modernization with Oracle

Rhea-AI Summary

Oracle (NYSE:ORCL) won an $88 million firm-fixed price task order from the U.S. Department of the Air Force on Feb. 12, 2026 to provide Oracle Cloud Infrastructure (OCI) services for the Cloud One program.

The order runs through Dec. 7, 2028, supports Top Secret SCI, Special Access Program and DISA Impact Levels 5 and 6 workloads, and includes use of Oracle AI Database 26ai on OCI for secure agentic AI workflows.

Positive

• $88 million firm-fixed price task order awarded
• Contract term through Dec. 7, 2028
• Supports Top Secret SCI, Special Access Programs, and DISA Impact Levels 5 and 6
• Includes deployment of Oracle AI Database 26ai on OCI for DoW workloads

Negative

• Work is time-limited with obligations scheduled only through Dec. 7, 2028

Key Figures

Task order value: $88 million Task order end date: Dec. 7, 2028 Impact Levels: Impact Levels 5 and 6 +5 more

8 metrics

Task order value $88 million Firm-fixed price OCI services task order for DAF Cloud One

Task order end date Dec. 7, 2028 Scheduled end of OCI task order performance period

Impact Levels Impact Levels 5 and 6 Defense Information Systems Agency workload classifications supported by OCI

Series D dividend 6.50% annual dividend Mandatory convertible preferred stock per Feb 5, 2026 8-K

ATM equity program $20 billion At-the-market common stock program per Feb 2, 2026 424B5

Senior notes offering $25,000,000,000 Senior unsecured notes across multiple maturities per Feb 3, 2026 424B2

Depositary shares offered 100,000,000 depositary shares Series D mandatory convertible preferred stock structure per 424B5

Previous close price $157.16 ORCL price before Air Force Cloud One announcement

Market Reality Check

Price: $157.16 Vol: Volume 24,224,677 vs 20-d...

normal vol

$157.16 Last Close

Volume Volume 24,224,677 vs 20-day average 31,978,073 (relative volume 0.76x) shows no volume spike ahead of this news. normal

Technical Shares at 157.16, trading below the 200-day moving average at 220.42 ahead of the contract announcement.

Peers on Argus

ORCL was down 1.71% with major software peers also lower: MSFT -2.88%, PLTR -2.4...

ORCL was down 1.71% with major software peers also lower: MSFT -2.88%, PLTR -2.41%, PANW -1.13%, NTAP -0.95%, FFIV -0.64%, pointing to a broader software pullback rather than a stock-specific move.

Common Catalyst Both ORCL and PLTR had defense and classified-cloud related headlines, highlighting ongoing demand for secure cloud and AI infrastructure in U.S. government workloads.

Historical Context

5 past events · Latest: Feb 10 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 10	AI agents launch	Positive	+2.1%	Announced new AI agents in Fusion Cloud to boost supply chain efficiency.
Feb 10	Manufacturing features	Positive	+2.1%	Unveiled new process manufacturing capabilities in Oracle Fusion Cloud SCM.
Feb 10	CX AI agents	Positive	+2.1%	Rolled out role-based AI agents for marketing, sales, and service leaders.
Feb 09	Healthcare OCI deal	Positive	+9.6%	Healthcare group migrated EHR to OCI and piloted Oracle Health Clinical AI Agent.
Feb 04	Clinical AI pilots	Positive	-5.2%	Canadian health systems selected Oracle Health Clinical AI Agent for pilots.

Pattern Detected

Recent AI and OCI announcements have usually coincided with positive next-day moves, though there has been at least one notable selloff on otherwise positive AI news.

Recent Company History

Over the past weeks, Oracle has repeatedly highlighted AI-driven enhancements and OCI adoption. On Feb 10, multiple AI agent and manufacturing updates coincided with +2.11% moves, while an OCI-powered EHR and AI adoption story on Feb 9 saw a stronger +9.64% reaction. However, a Canadian clinical AI agent announcement on Feb 4 corresponded with a -5.17% move, showing that even positive AI news can face selling. Today’s Air Force Cloud One award extends this OCI and AI government narrative.

Market Pulse Summary

This announcement adds a concrete U.S. Department of the Air Force task order for Oracle Cloud Infra...

Analysis

This announcement adds a concrete U.S. Department of the Air Force task order for Oracle Cloud Infrastructure, running through Dec. 7, 2028, and highlights use of Oracle AI Database 26ai across classified workloads. It extends a recent stream of AI and OCI wins that have produced mixed market reactions. Alongside this operational momentum, recent SEC filings detailing a $25,000,000,000 senior notes offering and a $20 billion equity program remain important financing factors to monitor.

Key Terms

oracle cloud infrastructure, secure cloud computing architecture, top secret sci, special access program, +1 more

5 terms

oracle cloud infrastructure technical

"The United States Department of the Air Force (DAF) has awarded Oracle an $88million firm-fixed price task order to provide Oracle Cloud Infrastructure (OCI) services"

Oracle Cloud Infrastructure is a suite of remote computing services—servers, storage, networking and management tools—offered by Oracle that companies rent instead of building and maintaining their own data centers. Investors care because demand, pricing and contract terms for these services drive recurring revenue, capital spending and profit margins; think of it like renting warehouse space for a business’s applications and data—more customers or higher usage usually means steadier income and lower upfront costs for the provider.

secure cloud computing architecture technical

"take advantage of DoW security services such as the Secure Cloud Computing Architecture to better meet the boundary protection needs"

A secure cloud computing architecture is the design and layout of a company's online systems that keeps its data and services protected, separated, and reliably available—like planning a building with locked rooms, fire exits and backup generators for digital information. Investors care because a strong design lowers the risk of costly data breaches, regulatory penalties and downtime, and it can reduce operating costs and boost customer trust and growth potential.

top secret sci regulatory

"including Top Secret SCI, Special Access Program, and Defense Information Systems Agency Impact Levels 5 and 6 workloads"

Top Secret Sensitive Compartmented Information (commonly called "Top Secret SCI") is a U.S. government classification that denotes the highest level of protection for intelligence material and the specialized, compartmented access needed to see it. For investors, SCI matters because companies or employees that hold these clearances can win restricted government contracts, creating revenue opportunities and barriers to competitors, but they also face heavy compliance costs, stringent security risks, and potential business disruption if access is lost.

special access program regulatory

"including Top Secret SCI, Special Access Program, and Defense Information Systems Agency Impact Levels 5 and 6 workloads"

A special access program is a regulated pathway that lets patients use an experimental drug, vaccine, or medical device outside clinical trials when no approved options are available. Think of it like allowing a small number of people to try a prototype product before wide release; for investors it can create early, limited revenue, generate real‑world safety and use data, and carry regulatory and reputational risks that can affect a company’s valuation.

defense information systems network technical

"meet the boundary protection needs of the Defense Information Systems Network."

A defense information systems network is a secure, government-run communications and data infrastructure that links military and defense agencies, carrying classified, logistics and operational information between locations and command centers. For investors, involvement with such networks can mean steady, often long-term contracts but also heavy technical, security and compliance requirements; think of it as a private, high-security internet where reliability, certifications and clearances determine which suppliers can win and keep business.

AI-generated analysis. Not financial advice.

The Department of War can now access Oracle Cloud Infrastructure technologies, including Oracle AI Database 26ai

AUSTIN, Texas, Feb. 12, 2026 /PRNewswire/ -- The United States Department of the Air Force (DAF) has awarded Oracle an $88million firm-fixed price task order to provide Oracle Cloud Infrastructure (OCI) services for the Air Force Cloud One program. This award continues Oracle's role as a key partner in Department of War (DoW) cloud modernization efforts.

The Cloud One program offers DoW customers to capitalize on the security, performance, and resiliency of OCI across multiple classification levels.

Under the program, mission owners can also take advantage of DoW security services such as the Secure Cloud Computing Architecture to better meet the boundary protection needs of the Defense Information Systems Network. They can also leverage Oracle AI Database 26ai on OCI to securely combine organization-specific information and public information when running agentic AI workflows to securely generate sophisticated answers and perform actions autonomously.

"Oracle remains committed to the DoW's mission and our next-generation database services and analytics, including Oracle AI Database 26ai, are transformative additions to DoW's Cloud One strategy," said Kim Lynch, executive vice president, Government, Defense & Intelligence, Oracle. "With this latest contract award, defense customers can confidently advance their most critical missions knowing Oracle's secure, trusted technologies provide the highest standards of security, compliance, and reliability required to meet their unique operational demands." 

OCI provides dedicated, secure, and accredited data center support for the DoW, including Top Secret SCI, Special Access Program, and Defense Information Systems Agency Impact Levels 5 and 6 workloads. Oracle National Security Regions are operated by cleared US citizens. 

The new task order covers OCI offerings used by Cloud One and its government customers across the DAF and the rest of the DoW enterprise. Work will be performed at contractor-designated facilities throughout the United States and is scheduled to run through Dec. 7, 2028.

About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at oracle.com.

Trademarks
Oracle, Java, MySQL, and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing.

 

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SOURCE Oracle

FAQ

What did Oracle (ORCL) win from the U.S. Department of the Air Force on Feb. 12, 2026?

Oracle won an $88 million firm-fixed price task order to provide OCI services to Cloud One. According to Oracle, the award supports DoW cloud modernization and runs through Dec. 7, 2028 with classified workload support.

How does the Oracle (ORCL) task order support classified workloads for the Department of War?

The task order provides OCI support for Top Secret SCI, SAP, and DISA Impact Levels 5 and 6 workloads. According to Oracle, Oracle National Security Regions and cleared US citizens operate accredited facilities for those workloads.

What role does Oracle AI Database 26ai play in the Feb. 12, 2026 Oracle (ORCL) award?

Oracle AI Database 26ai is available on OCI to run secure agentic AI workflows for DoW users. According to Oracle, it enables combining organization-specific and public information for sophisticated, secure answers and actions.

What is the duration and geographic scope of Oracle's (ORCL) Cloud One task order awarded Feb. 12, 2026?

The task order is scheduled to run through Dec. 7, 2028 and will be performed at contractor-designated facilities across the United States. According to Oracle, work is domestic and uses cleared personnel.

What does the $88 million firm-fixed price task order mean for Oracle (ORCL) revenue visibility?

The award guarantees contracted revenue commitments tied to the task order through 2028 but is time-limited. According to Oracle, the firm-fixed price structure defines scope and pricing for the contract period.