Dell Technologies secures a five-year, $9.7 billion Pentagon contract for Microsoft software and cloud services, boosting shares.
Dell Technologies shares jumped over 30% in after-hours trading after securing a $9.7 billion Pentagon software agreement. The five-year deal covers Microsoft licenses, cloud subscriptions, and support services under the Defense Department’s Enterprise Software Initiative.
The contract includes Microsoft 365 licensing and limited Azure support tied to migration efforts for the Joint Warfighting Cloud Capability program. Dell shares had already risen 4% earlier Thursday ahead of the announcement.
Analysts expect Dell to report first-quarter earnings of $2.96 per share on revenue of $35.13 billion after market close. The deal follows recent attention on Dell’s stock due to public endorsements and disclosures of holdings above $5 million.