The United States government on Thursday awarded Oracle a contract worth nearly $7 billion over 10 years, delivering a major boost to the software company after its shares faced pressure from investors this year.

Oracle stock rose about 3 per cent in extended trading.

The agreement covers Oracle software deployed in on-premises data centers supporting the U.S. military branches, intelligence community and Coast Guard, according to the Pentagon. The CIA was Oracle’s first customer.

The contract includes a five-year base period covering perpetual and subscription-based software licenses, maintenance and consulting services, according to a contract description.

The U.S. Department of Defense’s chief information officer, Kirsten Davies said the agency would save taxpayers at least $441 million by fundamentally changing how it procures Oracle capabilities for on-premises systems.

Oracle co-founder Larry Ellison has been a longtime supporter of President Donald Trump and reportedly donated $45 million to a nonprofit that backed Trump’s 2024 presidential campaign.

Ellison was among the first guests at the White House during Trump’s second term, where he announced plans for Stargate artificial intelligence data centers in the United States.

Trump also supported Oracle’s proposed stake in TikTok’s U.S. business.

In May, the Defense Department announced agreements with Oracle and other technology companies to support the deployment of artificial intelligence on classified networks.