Oracle Secures $88M Air Force Cloud Deal and CMS Migration Contract
Oracle secured an $88 million US Air Force cloud modernization contract and a CMS migration agreement to shift mission-critical workloads to Oracle Cloud Infrastructure. DA Davidson upgraded Oracle to Buy with a $180 target, citing easing OpenAI ties, data center momentum and core software growth despite high debt.
1. CMS Modernization Contract
Oracle secured a contract announced on February 11 to modernize Centers for Medicare & Medicaid Services systems by migrating and consolidating on-premise workloads to Oracle Cloud Infrastructure, enhancing security compliance and federal mission-critical operations.
2. $88M Air Force Cloud Award
On February 12, Oracle won an $88 million US Air Force award to provide cloud services as part of the Pentagon’s ongoing cloud modernization efforts, reinforcing Oracle’s role in federal technology procurement.
3. Buy Upgrade with $180 Target
DA Davidson upgraded Oracle to Buy with a $180 price target on February 15, citing stabilizing OpenAI partnerships, robust data center demand and core software growth, while noting high debt and lease commitments remain considerations.