Oracle (ORCL) Shares Tumble After Mega Discount Deal With Federal Agencies

July 7 - Oracle ORCL shares slid nearly 2% Monday after the company unveiled steep price cuts for U.S. federal agencies, according to a Monday announcement by the General Services Administration.

Under the deal, agencies gain a 75% discount on Oracle's license?based technology and access to advanced data management tools, such as Oracle Database 23ai on Oracle Cloud Infrastructure, through November 2025.

CEO Safra Catz said the firm is working closely with the GSA to modernize federal systems, noting that AI?driven cloud services could help agencies do more while spending far fewer taxpayer dollars.

Acting GSA Administrator Stephen Ehikian described the pact as a landmark agreement, part of the OneGov program that bases pricing on government?wide volume rather than separate agency deals. The program follows similar discounts from Google GOOGL, Adobe ADBE, Salesforce CRM and Elastic ESTC.

Despite today's pullback, Oracle shares are up about 40% year?to?date, reflecting investor confidence in its cloud and software offerings.

All told, the GSA deal underscores Oracle's push to expand its public?sector footprint by combining deep discounts with cutting?edge AI capabilities.