Dell Technologies (NYSE: DELL) shares climbed approximately 4% on Thursday after the company’s federal systems unit secured a major software purchasing agreement with the Pentagon valued at roughly $9.7 billion.
Dell Federal Systems received a firm-fixed-price blanket purchase agreement under the Defense Department’s Enterprise Software Initiative, covering a five-year arrangement designed to centralize software procurement.
The agreement serves the Department of Defense, the Intelligence Community, and the U.S. Coast Guard, consolidating purchasing activity across multiple federal agencies under a single contract vehicle.
The deal covers Microsoft software licenses, cloud-based subscriptions, and Software Assurance support services for the agencies involved in the procurement arrangement.
The contract also includes access to various Microsoft 365 licensing packages, including offerings designed specifically for systems operating without direct cloud connectivity.
Dell Technologies said the agreement provides limited Microsoft Azure support tied to migration efforts connected with the Joint Warfighting Cloud Capability program.
The Naval Information Warfare Center Pacific is overseeing the contracting activity associated with this Pentagon software purchasing agreement.
Shares of Microsoft (NASDAQ: MSFT) also rose, gaining approximately 3.47% on Thursday amid the broader announcement surrounding the software licensing deal.
Separately, Dell Technologies is scheduled to release its first-quarter financial results following Thursday’s market close, with analysts expecting earnings of $2.96 per share.
Analysts are also projecting first-quarter revenue of $35.13 billion when Dell Technologies reports its quarterly financial performance after Thursday’s closing bell.
The Pentagon contract represents a significant federal business win for Dell’s government-focused division, reinforcing the company’s position as a major supplier of technology solutions to U.S. defense and intelligence agencies.
