The Pentagon Just Threw Larry Ellison a $7 Billion Lifeline. Will It Be Enough to Stop the Oracle Crash? - 24/7 Wall St.

What the report says

24/7 Wall St. reports that Oracle received a Pentagon enterprise software agreement worth nearly $7 billion, announced July 23, 2026, covering software and services for U.S. military branches, the Coast Guard and intelligence agencies. The agreement, handled through the Department of the Navy, combines licensing, maintenance and consulting into one arrangement with an initial five-year term and a possible five-year extension. The outlet says Oracle shares rose more than 3% after the award.

The contract arrives during a severe downturn for Oracle’s stock. According to the report, Oracle closed at $120.04 on July 23, down about 46% from its Sept. 2, 2025 level and nearly 50% lower over the prior year. 24/7 Wall St. also cites a steep decline in Larry Ellison’s fortune, saying his net worth fell from roughly $388 billion in September 2025 to about $175 billion by mid-July 2026.

The article frames the Pentagon win against concerns over Oracle’s costly artificial intelligence infrastructure expansion. It reports fiscal 2026 capital spending of $55.66 billion, negative free cash flow of $23.69 billion, total liabilities of $218.70 billion and plans to raise about $40 billion in fiscal 2027. S&P Global Ratings is said to have cut Oracle to BBB-, just above junk status.

Still, 24/7 Wall St. notes that Oracle’s cloud infrastructure revenue grew 93% year over year to $5.79 billion in the latest quarter, while remaining performance obligations reached $638 billion. The key question raised by the report is whether a multiyear government contract can meaningfully steady investor confidence when Oracle’s debt, spending needs and AI buildout remain much larger than the award itself.